Report Says Half of Homebuyers Arent Mortgage Knowledgeable

Report Says Half of Homebuyers Arent Mortgage Knowledgeable Report Says Half of Homebuyers Arent Mortgage Knowledgeable

first_img June 14, 2017 691 Views When it comes to homeownership, things can get confusing. In a recent Fannie Mae Perspectives Blog by Housing Access and Affordable Housing Initiatives VP Mike Hernandez, he said almost half of homebuyers were unable to answer questions about key mortgage qualification criteria and consumers are in agreement that homeownership education is helpful and should occur earlier in the process. So what needs to be done in order to educate while not delaying closing?The April 2017 New Residential Construction report put out by the U.S. Census Bureau said in April alone there were 1,229,000 million building permits, 1,172,000 housing starts, and 1,106,000 housing completions—and this still isn’t keeping up with demand. Based on Hernandez’s statistic, that means almost 1.8 million of those homeowners or soon to be homeowners aren’t clear on the financing of their home. Hernandez said letting buyers know that homeownership education is evolving to meet buyers needs and busy lives could help bridge the consumer knowledge gap and in hand smooth the process for lenders. In today’s digital world, there are a growing number of homeownership education mediums, such as Fannie Mae’s Framework, that allow consumers to educate themselves on the go.Hernandez said homeownership education helps in three main ways. It helps the buyer be more prepared by teaching them how to decide on a budget based on the home inspection and know what documents to have together. This also helps lenders save time when the buyer is trying to qualify for a mortgage. Education makes sure the buyer is knowledgeable on what modifications or maintenance to do in their home to control and sustain their investment. Lastly, it gives the homebuyer resilience. Most courses include access to counseling after the purchase of the home, helping buyers avoid common issues.“The reality is, no matter how good the preparation, circumstances will go south for some borrowers,” Hernandez said. “For the problems that can’t be avoided, education can help borrowers manage the consequences and recover quickly.” Fannie Mae Homebuyer Education 2017-06-14 Brianna Gilpin in Daily Dose, Featured, News, Servicingcenter_img Report Says Half of Homebuyers Aren’t Mortgage Knowledgeable Sharelast_img

Leave a Reply

Your email address will not be published. Required fields are marked *