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More than two-thirds (68%) of buyers were surprised by how much they could pay for their first home.
With interest rates constantly changing and home prices at an all-time high, it’s never been more important for consumers to understand what they can afford.
Realtor.com has introduced a new energy shopping tool to help homebuyers determine whether a particular home is “affordable,” “featured” or “unaffordable.”
To give the buyer a more objective view of their budget, this tool uses the buyer’s specific financial data, current mortgage payments, taxes, insurance, and utilities. HOA to see if monthly payments are convenient.
This makes Realtor.com the first national home search site where buyers can filter their search by selecting their desired affordability range.
Recent surveys have found that more than two-thirds (68%) of buyers are surprised by how much they can pay for their first home.
Additionally, 32% of recent buyers find it difficult to understand how changes in mortgage rates affect their monthly payments, and 62% are surprised by closing costs.
Realtor.com’s affordable tool can manage homebuyer expectations and prevent unpleasant surprises in the home buying process, the company said.
“There’s nothing more frustrating than falling in love with a home only to realize you can’t afford it, and nothing more exciting than realizing you can afford that dream home,” said Colleen Coyle, VP of Product Management. , for Realtor.com.
“But there are many factors that can come into play. We introduced this tool to help buyers better understand how much home they can afford and whether specific homes fit their budget given their situation finances.
” This tool is especially important today with rising interest rates – which can add hundreds of dollars to monthly payments and affect purchasing power.
Home affordability depends on more than the asking price. Many new home buyers don’t realize the additional costs of things like HOA fees, taxes, and insurance, not to mention closing costs.
The new purchasing power feature allows home buyers to enter their monthly income, mortgage payments, and savings to determine their budget.
Users can save this information to their buyer profile and then search for homes that fit their budget.
Reference Source: National Mortgage Professional
