CNN “Homebuyers clueless about mortgages”
This article and video link at the end is from the USA but can help you understand what consumers need to know. Here in Canada, we tend to follow our neighbours to the south very closely when it comes to market swings and consumer patterns – I’ve been told Canada usually lag behind the USA by 2 years or so. So if the real estate market is picking up down south maybe we will follow shortly!
Here are some areas your clients may need more information – When it comes to mortgages, homebuyers answered basic questions about terms, how to choose a lender and financing wrong nearly one-third of the time, according to an April survey of more than 1,000 current and prospective homeowners by real estate website Zillow.
Among the survey’s findings, 31% of buyers don’t think it’s possible to get a mortgage for less than 5% down(zero down tricks); 34% don’t know what the term “annual percentage rate” (APR) means and one in four believe you must close with the lender that pre-approves your mortgage.
How can you provide your clients with information to help them avoid these simple confussions?