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13
WHAT IT TAKES
TO OWN A HOME
Although a majority of Americans favor
homeownership, Fannie Mae's latest National
Housing Survey revealed many overestimate
the qualifications and what it takes to own a
home.
"Despite increased exposure to credit
scores and online resources, consumer
understanding about what it takes to qualify
for a mortgage has not improved since our
original study in 2015, potentially discouraging
willing and qualified Americans from taking
steps toward homeownership," the GSE's
report, authored by Mark Palim and Sarah
Shadad, of Economic and Strategic Research,
stated.
Fannie Mae said that a 2018 study, which
included an online survey of more than 3,000
respondents, found that more consumers
reported seeing their credit scores, but close to
half cannot recall what it is.
Also, consumers overestimate the
necessary credit score and down payment
needed to qualify for a mortgage, remain
unfamiliar with low down payment programs,
and an overall lack of knowledge on mortgage
qualification.
"While viewing one's credit score is a good
start, consumers need to understand what
to do with that information," the report by
Fannie Mae indicated. "Although Americans
are confident they could improve their credit
score, monitoring a credit score is not the
same as understanding how the score impacts
their financial situation."
e report added that mortgage education
should be timely, customized, convenient,
simple, and delivered when a potential
borrower is making a decision on whether to
buy or sell.
Optimizing information for mobile devices
will play a large role in closing the gap,
especially for younger borrowers.
"Some mobile apps already help consumers
budget, invest, and manage debt. Mortgage
tools could be integrated into more of these
apps to provide step-by-step advice," Fannie
Mae said.
