Understanding The Real Estate Mortgage
When you are in the market for a home then sooner or later you have to deal with a mortgage and understanding the way mortgages work, especially in the current market is a HUGE issue for many buyers. I cant tell you the number of times we here at Dean Graziosi have been asked about mortgages and how they work. We estimate that about 75% of new home buyers have a difficult time understanding the real estate market and how mortgages work. In fact many people just don’t buy a home or invest in property because they don’t understand the mortgage process and find the whole thing very scary when buying real estate.
The Answer
The answer for people that are in the real estate industry and who want to increase sales, is to help the consumer understand the mortgage process, address their fears, and do whatever we can to help them with their purchase. You need to address financing, interest rates, monthly payments and especially down payments.
Down Payments
The sizable amounts that are now required for down payments have also become a huge issue for many home buyers. It is estimated that almost 30% of possible home buyers are not in the market to buy a home because of a lack of a down payments, that’s even more people than those that have poor credit.
If People in the real estate business could help people address these fears and issues then more people would be in the market for homes. They would cut expenses in other areas such as personal luxuries, clothing expenses, and would stay home more often, if there were a way to lower their down payments.
This type of survey done by Harris Interactive, is not alone, other surveys within the real estate industry have come up with similar conclusions. So, the answer for those of us in the real estate market is to address the issues of home buyers and help them get into the home of their choice even if the real estate market is on a down turn.
