It’s common knowledge that purchasing a home can be challenging. But while some buyers may lose sleep over home inspections or finding a home in their favorite neighborhood, real estate professionals know that one of the biggest difficulties is actually tied to financing the home.
In fact, according to the National Association of REALTORS® 2015 Profile of Home Buyers and Sellers, an overwhelming majority of recent buyers (86 percent) financed the purchase of their home. Younger buyers were more likely to finance and for more of the purchase price; the median down payment ranges from 6 percent for first–time buyers to 14 percent for repeat buyers. Almost half (45 percent) of first–time buyers in NAR’s survey said the process of applying for and getting approved for a mortgage was either much more or somewhat more difficult than they expected.
Check out HouseLogic’s “5 Newbie Mortgage Mistakes” article for tips on making smart mortgage moves and saving a little money in the process. Then speak with a REALTOR® about the challenges clients face when financing a mortgage. Also consider reaching out to a mortgage lender for advice on pitfalls to avoid when applying for a home loan.