Millions of Americans may feel as if rising home prices prevent them from affording a home. But what if they just don't know how to buy a home?
According to credit scoring company FICO, 59% of Americans said in a survey shared with USA TODAY that they don't fully understand the steps involved in buying a home, and the figure rises to 64% among first-time homebuyers. Even among people who are planning to buy a home, half said they don't completely understand the process. About 1 in 5 Americans, including 1 in 4 prospective homebuyers, also underestimate how significantly credit score affects mortgage rates, believing it has minor or no impact; or, they say they're not sure.
Roadblocks to homebuyers don't all rest with the economy. Many homebuyers have more control than they may think.
"Consumers who are looking to buy homes in the next year are facing real headwinds, primarily citing current interest rates and home prices, but they are not the only challenge," Jenelle Dito, vice president of FICO's consumer empowerment programs and partnerships, said in an email. "A surprising number of potential buyers face knowledge gaps around the homebuying process."
One of the first things buyers should know is what their credit score is; then they should devise a plan to improve it, financial experts said.
According to credit scoring company FICO, 59% of Americans said in a survey shared with USA TODAY that they don't fully understand the steps involved in buying a home, and the figure rises to 64% among first-time homebuyers. Even among people who are planning to buy a home, half said they don't completely understand the process. About 1 in 5 Americans, including 1 in 4 prospective homebuyers, also underestimate how significantly credit score affects mortgage rates, believing it has minor or no impact; or, they say they're not sure.
Roadblocks to homebuyers don't all rest with the economy. Many homebuyers have more control than they may think.
"Consumers who are looking to buy homes in the next year are facing real headwinds, primarily citing current interest rates and home prices, but they are not the only challenge," Jenelle Dito, vice president of FICO's consumer empowerment programs and partnerships, said in an email. "A surprising number of potential buyers face knowledge gaps around the homebuying process."
One of the first things buyers should know is what their credit score is; then they should devise a plan to improve it, financial experts said.
3 months ago
