Fear Keeps Borrowers From Home Financing

IRVINE, CA—Nearly half (49%, to be exact) of today’s potential homebuyers say they are not pursuing the financing they need to buy a home out of fear that they won’t qualify for a mortgage, according to a national consumer survey from loanDepot, a private, independent retail home-loan lender. The firm reports that while strong pent-up demand to buy a home exists among a broad national cross-section of the population, very few prospective buyers have actually taken any steps to see if they’ll qualify for a home loan.

Ironically, for many buyers, this fear is unfounded. According to Dave Norris, president and COO of loanDepot, “While market and regulatory conditions have made it harder for many borrowers to secure a loan, consumer lending is beginning to loosen up for mortgage borrowers, including those with less-than-perfect credit. Potential buyers are forfeiting their drams of homeownership before they find out what financing options are available to them. It’s never been easier than it is today to go online and research your options. They may be better than most people think.”