Most Americans Struggle With The Mortgage Process

A new report shows the home loan process is off-putting to consumers

Most Americans Struggle With The Mortgage Process
December 2, 2016

Data from Sente Mortgage shows that, although 92 percent of Americans understand that purchasing a home makes more financial sense than renting, 70 percent don't know where or how to begin the process.

The complexity of finding and applying for a mortgage could be putting people off, Sente suggests. In their findings, 44 percent of the respondents surveyed admit that the home buying process seems intimidating to them. Meanwhile, 30 percent didn't know how large a home loan they could afford, while 25 percent admitted they had no understanding of the future impact on their finances of buying a home. Also, one fifth of people believed that their lack of financial education meant they couldn't buy a home without help.

Sente Mortgage chief executive Tom Rhodes said, "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."

From the collated information, it was clear that 11 percent of people were more likely to seek advice on vacationing than on buying a home. People are twice as likely to compare TV prices than mortgages. In such cases, it's up to real estate agents to help buyers find the right lender and provide guidance through these complex transactions.

If you are interested in refinancing your home loan, visit the MoneyTips Mortgage Planner .


Photo ©iStockphoto.com/burakpekakcan

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