Tennessee Home Buyers Don’t Know Mortgage Basics
A survey performed by Zillow.com showed that home buyers are unaware and uniformed of even the most basic information when it comes to buying a home. Prospective buyers were asked true/false questions about interest rates, payments, FHA programs, and the pre-qualifying process.
The results showed that a high percentage of potential buyers believed that FHA loans were strictly for 1st Time home buyers. Others believed that discount points were standard and should be used in all mortgage transactions. I previously addressed this point in "Mortgage Rates. When Should You Pay Discount Points?!"
All in all, the survey shows that despite all of the news of interest rates, foreclosures, and the housing markets, most people do not understand the buying process, do not have an idea what current rates are, or what effects the rate they may qualify for.
Home buyers can save a lot of money by being informed and choosing the right option that best fits their future plans and goals.
If you are considering buying a home at all in the near future, I encourage you to call so we can discuss these mortgage basics. You will go into the process armed with the knowledge needed to ensure a much smoother home buying experience.
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