new survey indicates that home buyers are ill-prepared to take out a
mortgage, answering basic questions about mortgage information
incorrectly nearly half (46 percent) of the time, according to a Zillow
Mortgage Marketplace. So I wondered, for the regular readers of my blog,
what is your MIQ?
What You Must Know Now:
than 1,000 home buyers were asked to respond true or false to eight
mortgage-related statements, including â€œThe rates of 5/1
adjustable-rates mortgages always increase after years.â€Â Although the
correct answer is false, because 5/1 ARMs do adjust after five years,
but the rates could go up or down, 57 percent of people surveyed
answered this question incorrectly.
percent of home buyers surveyed also incorrectly stated that home
buyers should always buy mortgage discount points. The fact is, the
decision hinges on how long the borrower plans to own the property, and
in some situations, buying mortgage discount points is not worthwhile.
additional one-third of respondents do not understand that lender fees
are negotiable and vary by lender, incorrectly thinking lenders are
required by law to charge the same fees for credit reports and
respondents also believe that pre-qualifying for a loan means they have
secured financing.Â With a pre-qualification, which is the earliest
step in the mortgage process when a lender approximates the amount the
borrower can afford, the lender does not run the borrowerâ€™s credit or
request any documentation to verify the information provided by the
less than half of the polled prospective home buyers also do not
understand that Federal Housing Administration (FHA) loans are available
to all buyers, but instead believe only first-time buyers qualify.Â In
reality, FHA loans can cost less for many buyers, including repeat
buyers with low to average credit scores and with down payments of less
than 20 percent.
So how did you fare? Â Are you savvy? Â Let us help you up your MIQ! Â Give us a call before you buy or refinance.
(O) 310-571-1364 DIRECT
The Bremner Group at Coldwell Banker
ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
Accredited Buyer Representative|Certified Distressed Property Expert |Pre-Foreclosure Specialist Certified
want you to know that I appreciate any referrals from friends and
associates who may be in the market to buy or sell real estate. You can
count on me giving them the same high-quality service I provide to all
of my clients.