All too often, homebuyers go into the home-buying process with very little knowledge about how mortgages work or about the various aspects of taking out a home loan. This point was driven home recently with a study by Fannie Mae about homebuyer education.
Homebuyers Lack Educational Resources
After conducting more than 50 face-to-face interviews and eight two-hour small group discussions across four markets, the study revealed that homebuyers typically have little or no knowledge of homebuyer educational resources to help them out before making a purchase.
Even though all participants in the Fannie Mae study agreed that being educated about how mortgages work instills confidence in homebuyers, very few were aware of available homebuyer resources. Those who were typically learned about them through referrals by loan officers in order to qualify for certain loans or because completing one was a stipulation to receiving down payment assistance or other help.
Homebuyers Not Alone
Incredibly, homebuyers are hardly the only ones who are not well-educated regarding homebuyer education options. Indeed, the study also reveals that very few real estate or mortgage professionals were familiar with popular homebuyer education providers or services. Real estate agents tend to consider homebuyer education as being under the purview of mortgage and lending professionals. They do not consider it to be a part of their job description and usually assume that buyers will get the help that they need from lenders. Meanwhile, lenders often view such educational resources as additional hurdles to overcome during what is already a complicated and drawn-out process.
Too Many Steps Already
Finally, homebuyers also tend to feel like they are asked to do enough as it is and tend to be resistant to adding yet another step to the process. Given that around 87 percent of non-homeowners think that you need at least 10 percent down to buy a home, it’s clear that homebuyer education needs to be a bigger priority. With any luck, homebuyer education will become more prominent so that homebuyers can make more informed decisions.
About Champion Title & Settlements
At Champion Title & Settlements, we understand that homebuyer education is a team effort. We understand that the value we create for our lender and realtor clients is based largely on winning them referrals and repeat business. That means working diligently to educate homebuyers about title issues and title insurance, answering questions with enthusiasm, and ensuring their closing goes off without a hitch. To learn more about how we can help simplify your closing experience, visit our homepage today.