Funding is a crucial factor first step in the home buying process, but it is also one of the most confusing. Two-thirds of survey respondents don’t understand the benefits of pre-approval for a mortgage. The benefits of pre-approval can include being able to close a home quicker, get clear budget constraints, and make an offer that is more attractive to a seller. A lower interest rate is Not a benefit of prior approval, as the majority of respondents believed.
Determining a down payment amount and when to purchase Personal Mortgage Insurance (PMI) is an important financial decision to make when buying a home because it can have a major impact on your monthly payment. Many respondents assumed that PMI would be required in all cases, but the only case where it is not required is on a traditional loan with a down payment of 20% or more.
Most US adults answered correctly that a person’s payment history affects their creditworthiness and that the purpose of a rating is to determine if the home is worth the purchase price.
But when it comes to the love lives of celebrities, the Kardashians, and the NFL, Americans know more, even if their lives and finances aren’t directly affected. The typical survey taker correctly answered three out of five questions in each of these categories.
Almost 85% of respondents knew this Kim Kardashian has four children with her KanyeWestand 70% answered correctly whom Jennifer Lopez is now engaged after the first breakup in 2004 (answer: Ben Affleck). And when it comes to football, the typical American knows his stuff Tom Brady; 71% of respondents knew the popular quarterback left the New England Patriots to play for the Tampa Bay Buccaneers.
The typical American is as baffled by real estate as by the complex world of cryptocurrency, and only gets two out of five questions right.
“The real estate process can be complicated and confusing, but it doesn’t have to be,” he said Amanda Pendleton, expert on home trends from Zillow. “By educating buyers on basic property fundamentals and hiring experts to guide them through the process, they can avoid costly pitfalls and put themselves in a stronger competitive position. When it comes to choosing the right home, real estate technologies like interactive floor plans bring information closer to the average buyer’s fingertips than ever before, helping them move around quickly and confidently.”
Here are five tips to help buyers with home shopping:
- Understand what you can afford. Buyers should start with a mortgage calculator and Zillows Affordable tools Understand what goes into a mortgage payment and what they can realistically afford on a monthly basis.
- Check if you are eligible for deposit assistance. Finding enough money for a down payment is a common obstacle to buying a home. Aspiring buyers can see which ones Down payment help Programs may be available in any home listing on Zillow.
- Find an agent you trust. Zillows Agent finder tool helps buyers find the best agent for their specific needs. Buyers can read reviews from top real estate agents in their area and contact them directly through the tool.
- Get pre-approved – not just pre-qualified – for a mortgage. It’s a more extensive financial check, but pre-approval is given to the buyer — and the seller — more confidence in the buyer’s ability to finance the home. A new Zillow survey found that 86% of sellers prefer a buyer who is pre-approved rather than pre-qualified for a mortgage. Buyers can start them Pre-approval process online.
- Find a lender. Zillow Research indicates that some homebuyers can save tens of thousands of dollars over the life of their loan by looking for the best mortgage rate. Buyers can compare rates and fees for multiple lenders online at Zillow Mortgage Marketplace.
Home shoppers can visit the Zillow blog to take the full quiz and see how their real estate knowledge compares to the typical American.
About the Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reinventing real estate to make it easier to move on to the next chapter in life. Most visited real estate website in The United StatesZillow® and its subsidiaries provide customers with an on-demand experience to sell, buy, rent or finance with transparency and ease.
Affiliates and subsidiaries of the Zillow Group include Zillow®, Zillow Premier Agent®, Zillow Home Loans™, Zillow Closing Services™, Trulia®, Out East®, ShowingTime®, Bridge Interactive®, dotloop®, StreetEasy® and HotPads® . Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).