Consumers Lacking Information On Mortgages
The survey shows that across age brackets, well under 50% of respondents felt they would not have any difficulty qualifying for a mortgage.
September 29, 2016 – Consumers across income and education brackets would greatly benefit from increased awareness and financial understanding of downpayment requirements needed to obtain a mortgage, according to the most recent NAR HOME Survey*.
The survey shows that over one-third of those who do not currently own a home, “…believe it would be somewhat difficult (up from 30 percent in Q2 2016) to qualify for a mortgage given their financial situation.” 63% of renters and 70% of those who live with someone share that sentiment.
Nationally, of those with a household income of between $50K and $100K, 45% said it would be very or somewhat difficult to qualify for a mortgage. 44% of those with a household income of more than $100K felt it would at least be somewhat difficult.
In the Midwest, 41% of respondents felt it would be somewhat difficult, and 20% very difficult, to obtain a mortgage.
Mike Ruzicka, President of the GMAR, said, “The GMAR has assembled a list of downpayment assistance loans and grants for our members to consult.” “The list informs REALTORS® about different loans and grants that are available and which lenders to turn to for more information,” he continued.
The survey shows that across age brackets, well under 50% of respondents felt they would not have any difficulty qualifying for a mortgage. In the Midwest, only 39% believe they would not have any difficulty.
“There are a plethora of mortgage products available in the marketplace today that cover most buyer situations, According to Mike Kellman, Senior VP of Lending for North Shore Bank. “In the event there is not a product available for a particular situation, a meeting with a qualified loan originator will still be beneficial as it will give the buyer a path to yes,” Kellman added.
*The 3rd Quarter HOME Survey was conducted by the National Association of REALTORS® (NAR) and released September 14, 2016. To see the survey, please follow this link: http://www.realtor.org/reports/2016-q3-homeownership-opportunities-and-market-experience-home-survey