A marketing message that incorporates financial resources or talks in the community about how to finance a home purchase may help motivate some would-be home buyers move forward into ownership.
Ninety-two percent of consumers surveyed say that owning is a better long-term financial decision than renting. Yet, only 30 percent know where to start when it comes to buying a home, according to the survey conducted by Sente Mortgage, an independent mortgage bank based in Austin, Texas.A new nationwide survey reveals that half of U.S. consumers say they lack the financial education needed to purchase a home. What’s more, 44 percent of consumers say they find the home-buying process scary or intimidating.
Younger generations may particularly be lacking enough financial knowledge to move forward. More than 30 percent of millennials say they don’t know the mortgage amount they could afford, and 25 percent say they don’t understand the long-term financial impact of buying a home.
“The home buying process is complex, and it’s clear that for many of today’s consumers, gaps in financial education are leading to some risky purchase behaviors,” says Tom Rhodes, CEO of Sente Mortgage. “Unfortunately, many of the most valuable resources available to buyers go grossly under-utilized, but with the right guidance and support, owning a home can be one of the biggest contributing factors to long-term financial success.”
Many consumers admit to not spending enough time shopping for a mortgage. Eleven percent of consumers say they were more likely to seek advice and recommendations when planning a vacation than when buying a home. Also, consumers were twice as likely to compare options when buying a TV than when selecting a mortgage, Sente Mortgage’s study revealed.
But many buyers say they do trust a real estate agent to guide them accordingly. Sixty-three percent of consumers say they could not navigate the financial side of the home buying process alone, but 51 percent say they entrust the selection of their lender to their real estate agent.
Source: Sente Mortgage