Feb 5 2018 37430 1

Dated: 02/05/2018

Views: 23

Your buyers don’t understand mortgage basics

NEW YORK – Feb. 2, 2018 – Many Americans begin looking for a home to buy without understanding the fundamentals of applying for a mortgage or what it takes to qualify for one, according to a new survey by Ally Home, a direct-to-consumer mortgage business.

Ninety-two percent of the more than 2,000 U.S. adults who responded to the survey admit they don't know how much mortgage they can afford. Further, most are confused about "rates" versus "points," and only a third have a general idea what their average closing costs might be.

Only 8 percent realize that the maximum debt-to-income ratio is usually 43 percent. Most respondents believe it's significantly lower or don't know at all.

"When it comes to major financial investments, such as a home, it's critical consumers have a solid grasp of the basics," says Diane Morais, president of Consumer and Commercial Banking Products at Ally Home. "It can seem overwhelming at first, but by mastering just a few of the fundamentals, home buyers can put themselves in a much better position to win and secure the mortgage that's right for them."

Source: Ally Financial

Blog author image

Team H and L Miami

Team H&L Miami @ Real Estate Empire Group is a fast growing boutique Real Estate firm established in 2001. It began to revolutionize property sales as well as marketing through brokers, agents, and an....

Latest Blog Posts

Jul 22 2018 37430 1

House Hunting Survival TipsPosted byTeam H&L Miami @Real Estate Empireon7/22/2018Searching for a new house that will meet your needs without breaking your budget can sometimes feel overwhelming!

Read More

Jul 21 2018 37430 1

Luxe Must-Have Bathroom Trends You Need Right NowPosted byTeam H&L Miami @Real Estate Empireon7/20/2018The bathroom is a room of sanctuary in the home. It is the one room where, for the most part,

Read More

Jul 15 2018 37430 1

Do You Need An Appraisal Contingency?Posted byTeam H&L Miami @Real Estate Empireon7/15/2018Once you have signed the purchase and sales agreement, the property will be appraised by a licensed

Read More

Jul 13 2018 37430 1

Is It Worthwhile to Invest in Home Improvements? Posted byTeam H&L Miami @Real Estate Empireon7/11/2018For a home seller who wants to maximize his or her house sale earnings, it may be beneficial

Read More