According to a recent Zillow research, most homebuyers struggle to grasp mortgages, yet most rely on their brokers to help them understand their financing alternatives.
It is more important that ever for real estate agents to have knowledge of the lending market and stay on top of average interest rates, types of loans available and the best lenders for each buyers’ particular scenario.
According to the research, which was released on Monday, 55% of all successful purchasers get advice on mortgage finance from their agents or brokers. More first-time buyers rely on brokers than any other group, with 58 percent saying they do so for information. 53 percent of repeat buyers consult their representatives.
In contrast, less than a third of all buyers rely on websites, and only about a third go to financial organizations like banks for mortgage education. Only 29% of people ask their friends to help them understand their mortgage alternatives. This indicates that the vast majority of real estate buyers learn about their financing options from agents.
Many of the top brands in real estate will probably be pleased with the poll results; well-known companies like Compass and Redfin have made significant investments in their mortgage businesses. Consumers rely on agents, thus theoretically agents and their brokerages should be able to increase revenue by directing customers to their own lending networks.
In any case, the latest Zillow survey demonstrates that consumers frequently experience stress related to their mortgages. For instance, 56 percent of respondents rated comprehending the costs of their mortgage as one of the top three financial challenges they faced while purchasing a home. Comparatively, only 45% of consumers listed determining how much they could pay as one of the three most challenging problems to solve.
The research is based on a survey conducted in December of 665 satisfied customers and 1,908 potential clients. Successful homebuyers were those who closed on a deal in the previous two years, while prospective homebuyers were those planning to close in the coming year.
The COVID-19 epidemic, housing preferences, and a variety of other current events are not discussed in the report since it exclusively focuses on the financial aspects of home ownership.
But even so, it does seem to indicate that for many consumers, the challenging process of purchasing a home continues to be a big source of worry. However, the results also point to opportunities for brokers and businesses that can offer information and simplify the mortgage process.
The study also found that slightly more than a quarter of homebuyers, or 28%, worry about saving money for a down payment, that 71% of buyers admitted to making at least one sacrifice, such as skipping out on entertainment or vacations to save money, and that 73 percent of buyers said they had paid mortgage insurance of some kind.
The study also finds that approximately a third of buyers claimed to have received some kind of subsidy or down payment aid while purchasing a home. A bank was the most frequent type of support reported in the study. Credit unions, charitable organizations, and the government are further sources.