New Survey Revealing the Level of Consumer Knowledge on Mortgage Loans

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A whopping 74% of the participants in the “Home America Views Homeownership” survey of Wells and Fargo said that they had knowledge and understanding of the financial process which home buyers go through. 2,017 randomly selected adult Americans took part in the survey which was carried out between June 3rd and June 16th 2014.

30% of the survey respondents believed that only people with high income could access a mortgage loan and buy a home. 64% thought that very good credit score was necessary for getting approved for a home loan.

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64% of the people who took part in the survey responded that they have knowledge on the size of the down payments which was necessary for the purchase of a home with the use of a mortgage loan. 44% of respondents thought that a down payment of 20% of the price of the property is required for obtaining home finance. The FHA home loans have always come with a minimum down payment of 3.5%. At present, there are various conventional mortgage loan programs which require a down payment lower than 20%. Some conventional programs come with a down payment which is as low as 5%. Down payment assistance is available as well.

Respondents listed the lack of funds for making a down payment as one of the top barriers preventing consumers in the United States from obtaining a home loan. This issue was ranked highly especially by the group of participants from 18 to 34 years of age.
44% of the respondents said that they has no or very little knowledge of the closing costs which are associated with the purchase of a home. Nearly half of the consumers who took part in this Wells Fargo survey felt that they did not have access to homes which could match their financial needs.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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