Home Buyer Stress & The Bad Choices It Leads To

Study: Pre-Approved Home Buyers Get Lower Rates & Closing Costs

Video transcript

Buying a new house tends to happen over long periods of time and, for a lot of first-time buyers, that time still seems to go too quickly.

 

Because a recent Fannie Mae study shows that first-time buyers are feeling stressed and time-pressured, which leads to hasty choices buyers later regret.

Except, Fannie Mae says, the buyers are doing it all to themselves.

It’s not the journey. It’s too much focus on homes, an not enough focus on home loans.

The data is summarized in a Fannie Mae report published with a pretty direct title: “Lack of Mortgage Focus Complicates Home Purchase”.

The theme is that by the time most buyers decide to finally focus on their mortgage, it’s pretty much too late to do anything but just scramble to the finish line.

It’s too late to improve a credit score for access to lower rates, it’s too late to make course corrections for your household budget, and it’s too late to make sure you’re getting the most suitable loan for what you’re trying to do.

The net effect is that buyers learn too little and pay too much.

Don’t be that person. As soon as there’s a thought that, someday, you’ll want to stop renting and start owning, connect with a mortgage lender — a human — to talk about it. Get ahead of the process.

Give yourself your best chance for success.

Dan Green

Dan Green is a former mortgage loan officer and an industry expert. He's appeared on NPR and CNBC, and in The Wall Street Journal, Bloomberg, and dozens of local newspapers. Dan has helped millions of first-time home buyers get educated on mortgages, real estate, and personal finance. Have mortgage questions? Ask Dan in the chat.

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