Plenty of consumers make the mistake of thinking they can afford to live in a certain neighborhood or region just because they can afford the rent or mortgage payment. As many are finding out, the mortgage process is becoming more complicated as the shortage of homes for sales continues to grow.
The effort that goes into finding a dream home has been replaced with obtaining financing and sorting through the necessary paperwork to make that dream a reality. A recent survey from the National Association of Realtors finds that many potential buyers would rather do almost anything else than go through the mortgage process again.
Being fair, a little over half of the 1,000 people surveyed found the buying-lending experience easy to navigate. On the other hand 1 in 4 would rather gain 10 pounds of weight and almost 1 in 8 would rather spend a day with a person they dislike.
On top of those admissions by consumers, nearly 7% would rather get a root canal than go through the mortgage process again. People were more comfortable with public speaking, being in high places, flying in an airplane, being around snakes and being in a confined space than they were going through the mortgage process.
Much of the stress associated with borrowing comes from the lack of information and knowledge of the process. Asking when you will be updated and how that information will be provided are two key questions that may help improve the borrowing experience.
In the same survey by the National Association of Realtors, 3 in 4 home buyers admitted that commuting costs are either “very” or “some-what” influential in the ultimate purchase decisions. Uncle Sam recently released a new tool that helps consumers estimate commute costs in the Location Affordability Portal from the Housing and Urban Development and transportation departments.
It actually serves as two tools: one is the Location Affordability Index that predicts annual housing and transportation costs from a particular area. The second, My Transportation Cost Calculator enables users to enter basic information like income and travel patterns and then a customized estimate gives a better understanding of transportation costs, how much they differ in other locations and how the user is affected by individual choices.
With the invention of tools like this and making sure one stays informed during the mortgage process, potential buyers can get through the loan process with less stress.
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