A recent survey of prospective homebuyers found that most believe they are financially prepared for home ownership, yet many admit they aren’t sure what purchasing a property will actually cost them.
Nearly 90 percent of buyers surveyed say they know what type of property they can afford, but only 52 percent have actually determined what their monthly mortgage payment would be, according to the poll by Discover Home Loans.
Forty-one percent say they haven’t yet calculated their down payment, and nearly half — 48 percent — say they don’t know how much their mortgage payment would be if they chose a more or less expensive property.
Most homebuyers say they find the financing process “overwhelming,” including 76 percent of first-time buyers and, surprisingly, 54 percent of previous owners.
“The sheer amount of information can lead to confusion and stress,” Cameron Findlay, chief economist at Discover Home Loans, said in a statement accompanying the survey results.
For help understanding the financial aspects of home ownership, buyers say they are more likely to turn to real estate professionals than other sources of information such as family, friends, and mortgage bankers.
Fully two-thirds of buyers said they consulted a real estate professional for help and information to assess whether purchasing a home will be a good investment, compared with 56 percent who said they spoke with family or friends and 39 percent who went to a mortgage banker.
For help evaluating mortgage terms and competing offers, 59 percent sought the advice of a mortgage banker, and 49 percent turned to a real estate professional.
(Image: Flickr/401(K) 2012)