| October 3, 2014

Are Consumers Confident or Confused About Home Buying?

Answer: They’re confident – but not completely informed, either.

Many people are confused by the home buying process

The majority of consumers say they “know and understand” the home buying process, but many also admit they are unaware of how much money they need to pay closing costs.

That’s according to a survey of more than 2,000 adults by Wells Fargo. The September poll showed that 74 percent think they grasp the complex process of buying a home. Yet 44 percent said “they know nothing or very little about the closing costs required for buying a home.”

Also, some of what those polled said they know, is in fact, wrong. For instance, 44 percent told Wells Fargo they believe they’d need a 20 percent down payment. “In reality,” Wells Fargo says, “a 20 percent down payment is not a requirement on many loan programs.”

All of this led Wells Fargo to wonder if the industry is doing enough to educate consumers.

“Our survey also suggests we have an opportunity as lenders, nonprofit agencies and real estate agents to better inform Americans about credit ratings, mortgage costs and housing affordability,” says Franklin Codel, head of Wells Fargo Home Mortgage Production. “This would help demystify the home-buying experience for many consumers.”

Consolidated Credit has been trying to demystify that experience for years, says Gary Herman, President of Consolidated Credit.

“Purchasing a home is not an easy process,” warns Herman. “Double check all the information you gather because mortgage requirements can change in the blink of an eye. So it’s essential you keep up with all the current information, carefully look it over and adjust your home buying strategy, as necessary.”

Ready to buy

Another interesting aspect of the survey shows that although consumers are confused about the home buying process, “their financial houses are in order.” Wells Fargo believes this could increase their chances of purchasing a home. Those polled revealed:

  • 82 percent believe they know how to handle their personal finances (“how to save, earn and invest money, and work within a budget”).
  • 82 percent said they usually do not spend money they don’t have.
  • 63 percent have a “rainy day fund.”
  • Only 27 percent “tend to spend their money and not think twice about it.”

Seeking help for buying a home

Even though a large number of those polled are financially fit, it’s clear they need help in the housing education department. Herman recommends talking with a housing counselor because they have the experience and expertise to guide consumers through the difficult process – and they don’t represent a specific real estate company or bank.

“A certified housing counselor can help you understand the ever-changing world that is the mortgage industry,” says Herman. “They can also clear up any misunderstandings with things such as closing costs, down payments and give advice on mortgage assistance programs.”

Particularly for first-time homebuyers, the process can be intimidating. Pre-purchase homebuyer education programs can help you understand what you’re getting into and what you need to be successful. In addition, HUD-approved programs may provide certain benefits, like waiving at least a percentage of mortgage insurance if you’re opting for an FHA loan. Call us at 1-800-435-2261 to speak directly with a certified housing counselor to learn more.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

All Consolidated Credit counselors are certified personal financial counselors (CFC) We've helped 5 million people get out of debt! Call us today and see what we can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

The National Industry Standards for Homeownership Education and Counseling are a set of guidelines for quality homeownership and counseling services. Industry professionals who adopt these standards can be trusted to provide consistent, high quality advice.
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Consolidated Credit Consulting Services, Inc. has been verified as the owner or operator of the Web site located at www.consolidatedcredit.org. Official records confirm Consolidated Credit Consulting Services, Inc. as a valid business. Call us today and see what we can do for you.

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Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

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Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Consolidated Credit is proud to be an ANAB accredited member. Accreditation by a recognized and respected body such as ANAB ensures the impartiality and competence of our company. To see what we can do for you, give us a call.

U.S. Department of Housing and Urban Development - HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. Consolidated Credit is proud to be a member of HUD and also part of the Hope Now Alliance.

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