A new survey reveals less than half of consumers feel confident navigating the mortgage process, highlighting an opportunity to educate prospective homebuyers about title insurance and closing procedures.
Homeownership Aspirations Persist Amid Challenges
Fannie Mae’s Mortgage Understanding Survey reveals that while homeownership remains a key goal, financial concerns and rising costs have dampened immediate purchase plans:
- Only 19% feel it’s a good time to buy, compared to 62% in 2018.
- 74% of respondents plan to purchase a home in their next move.
- 25% are actively searching for a home to buy within three years.
Financial preparation is increasing among renters, with 21% actively saving and improving their financial readiness—up 5% since 2018.
Top Barriers to Getting a Mortgage
Respondents identified several obstacles to obtaining a mortgage:
- Insufficient income for monthly payments – 24%.
- Excessive existing debt – 16%.
- Poor credit score or history – 16%.
- Affording down payment/closing costs – 14%.
Despite these challenges, many view lenders and real estate professionals as valuable resources in navigating the process.
Information Sources for Mortgage Guidance
Consumers rely on a mix of digital and professional resources for mortgage information. The most frequently used sources are:
- Websites – 50%.
- Lenders – 48%.
- Real estate agents – 40%.
- Family and friends – 35%.
Lenders are considered the most influential resource, with 29% of respondents valuing their input over other options like financial advisors (15%) or social media (3%).
Opportunity to Educate Homebuyers
The survey underscores a significant opportunity to educate consumers on homebuying essentials, including the title insurance and closing processes. Organizations like the American Land Title Association (ALTA) provide educational tools, workshops, and multilingual resources to assist homebuyers:
- Consumer Marketing Workshops: ALTA offers virtual workshops to help professionals enhance marketing efforts and reach more buyers.
- Multilingual Marketing Materials: Homebuying guides and flyers are available in 12 languages, offering broader accessibility.
- HomeClosing101.org: A resource hub educating consumers on title insurance, closing costs, and related topics.
