A new Zillow survey found that the majority of Americans know more about celebrity love lives, the Kardashians and the NFL than on the ba
A new Zillow survey found that the majority of Americans know more about celebrity love lives, the Kardashians and the NFL than on the basics of buying a home.
In the national real estate company survey, the typical adult failed the basic real estate knowledge quiz and answered only two of five questions correctly.
Financing is a crucial first step in the home buying process, but it’s also one of the most confusing.. Two-thirds of those surveyed do not understand the benefits of getting pre-approved for a mortgage. Advantages of being pre-approved can include closing on a house faster, getting clear budget constraints, and making an offer that is more attractive to a seller. A lower interest rate is not a benefit of preapproval, as most respondents believed.
Determining the down payment amount and when private mortgage insurance (PMI) is required is an important financial decision to make when buying a home, as it can have a big impact on your monthly payment. Many respondents assumed that PMI is required no matter whatbut the only instance where it is not required is on a conventional loan with a down payment of 20% or more.
Most American adults correctly answered that a person’s payment history affects their credit score and that the purpose of an appraisal is to determine if the house is worth its purchase price.
But when it comes to the Love lives of celebrities, the Kardashians and the NFL, Americans are more informed, even though their lives and finances are not directly affected. The typical respondent answered three out of five questions correctly in each of these categories.
Almost 85% of those surveyed knew that Kim Kardashian has four children with Kanye West, and 70% correctly answered who Jennifer Lopez is now engaged to after her first breakup in 2004 (answer: Ben Affleck). And on the subject of football, the typical American knows a lot about Tom Brady; 71% of those surveyed knew that the popular quarterback left the New England Patriots to play for the Tampa Bay Buccaneers.
The survey results indicate that the typical American is so puzzled by real estate as by the complex world of cryptocurrenciesanswering only two of five questions correctly.
“The real estate process can be complicated and confusing, but it doesn’t have to be”said Amanda Pendleton, Zillow’s home trends expert. “By learning the basics of real estate and hiring experts to guide them through the process, buyers can avoid costly pitfalls and put themselves in a stronger competitive position. When it comes to choosing the right home, real estate technology like interactive floor plans puts information closer than ever to the average buyer’s fingertips, helping them move quickly and with confidence.”
Zillow notes that when buying a housePeople should:
– Understand what they can afford
– See if they qualify for down payment assistance
– Finding a reliable real estate agent
– Get pre-approved for a mortgage, not just pre-qualify
– Find a lender
To take Zillow’s real estate survey and get real estate tips, go here.
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