Today's homebuyer is more likely to be more financially prepared for homeownership than buyers were before the housing crash.
A new survey of homebuyers by LoanDepot and Mellohome finds that 74 percent of buyers are starting their home search with a home financing consultation rather than going out and looking at homes. For first-time buyers, 85 percent are starting out by evaluating financing options. Buyers value loan preapproval above finding the right real estate agent and the right home, as they then better understand what their budget range is, and preapproval affords greater competitive advantage in appealing to a seller, The Washington Post reports.
Sixty-seven percent of buyers in the survey said that finding the right home was the most difficult part of the process, followed by coordinating paperwork (64 percent), and the overall home-loan experience (59 percent). A common concern cited by buyers related to communication, particularly about loan fees and how to find the right loan. In addition, a quarter of respondents said their real estate agent and loan consultant didn’t communicate with each other. However, according to Mellohome, agents and lenders always talk with each other during a transaction; they just don’t necessarily make that clear to their buyer clients.
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