New Data Shows Financial Education Gap Creating Risk For Home Buyers
AUSTIN, TX (PRWEB) December 08, 2016 -- Sente Mortgage, an Austin-based independent mortgage bank, today announced the results of a national survey, uncovering a gap in U.S. financial education and the potential impact on today’s home buyers. The survey aimed to understand perceptions of the home buying process and how it compares to other life events in terms of time, stress and preparedness, and uncovered that a lack of financial knowledge could be creating increased risk for home buyers.
Key findings:
- While 92% of consumers believe that owning is a better long-term financial decision than renting, only 30% know where to start when it comes to buying a home
- Only 59% of respondents said they have the financial education needed to purchase a home, and of those who have not yet purchased, 1 in 5 don’t feel prepared to make the financial decision
- Lack of financial understanding may be leading to risky home purchase behavior, with more consumers citing they spent considerable time buying a TV than selecting a mortgage
- Respondents were 11% more likely to seek advice and recommendations when planning a vacation than when buying a home, and were twice as likely to compare options when buying a TV than when selecting a mortgage
- While 63% said they could not navigate the financial side of the home buying process alone, the majority (51%) still entrust the selection of their lender to their real estate agent
For many, buying a home is a huge source of stress. 44% of respondents found the process to be scary or intimidating, citing it as more stressful than major life events like choosing a career or picking the next President. As more Millennials enter the home buying market, the gap in preparedness remains apparent, with more than 30% saying they don’t know the mortgage amount they could afford and 25% saying they don’t understand the long-term financial impact of buying a home. What’s more, increased levels of student debt have also created cause for concern, with 50% saying those concerns have delayed other financial decisions such as buying a home.
“The home buying process is complex, and it’s clear that for many of today’s consumers, gaps in financial education are leading to some risky purchase behaviors,” said Tom Rhodes, CEO of Sente Mortgage. “Unfortunately, many of the most valuable resources available to buyers go grossly under-utilized, but with the right guidance and support, owning a home can be one of the biggest contributing factors to long-term financial success. Our goal is to help bridge that education gap to enable confident, lower risk home purchase decisions and ultimately give everyone that chance.”
For more information about Sente’s mortgage loan services and for valuable financial resources and tools, please visit http://www.sentemortgage.com.
About Sente Mortgage:
Sente Mortgage is a leading independent mortgage bank, helping create financial possibility for individuals and families across Texas. The company’s commitment to delivering a 5-star experience for every customer has allowed them to become one of the fastest-growing residential mortgage providers in the state of Texas, with a team of expert Mortgage Bankers dedicated to finding the right mortgage products for each client’s individual needs. Since its founding in 2007, Sente has been recognized three times as one of the nation’s fastest-growing companies on the Inc. 5000 list. Today, the company operates 14 offices across Texas, with headquarters in Austin. For more information about Sente Mortgage, please visit http://www.sentemortgage.com.
Molly W. George, Kickstand Communications, http://www.meetkickstand.com, +1 (512) 686-6405, [email protected]
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