Nearly two thirds of first-time buyers said they faced a shortage of affordable homes
Home affordability is the biggest stressor for many first-time homebuyers, according to a new report from LendingTree.
Nearly two-thirds of first-time homebuyers said that a shortage of affordable homes for sale was an issue for them. Most were looking for a home priced under $150,000, and nearly 85% would consider purchasing a fixer-upper to save money.
Nearly a quarter of millennial buyers want to own a home before getting married, and 43% of first-time buyers across all age groups are single, according to LendingTree. However, first-time homebuyers consistently underestimate the amount of time the mortgage process will take. Nearly half think they will be able to close in 15-30 days. The average closing time is 43 days.
First-time buyers also struggle with their credit rating. More than 25% have poor credit, and just 15% have a score of 740 or higher, LendingTree reported.
Low income and a lack of savings are the top two barriers to homeownership among first-time buyers, the study found. Finding a home within their budget is the most stressful part of the homebuying process for nearly half of first-time shoppers.
