More than three quarters of existing homeowners say they feel more confident with their second purchase.
In a survey conducted in March for Mr Cooper, Researchscape International found that 22% of first-time buyers underestimated closing costs, 20% didn’t use a homebuyer program, and 19% completely wiped out their savings.
Second-time around, 43% said they trust their mortgage lender enough to use them again.
Most next-home buyers (82%) spent up to 6 months searching for a home and 27% are planning to spend less this time. Price is the main factor in home search for 61%, followed by neighborhood (58%) and outdoor space (41%). Only 27% consider school systems a top-10 priority in their next purchase decision.
Many (51%) next-home buyers are also looking for a long-term home, possibly their ‘forever home’.
First-time buyer mistakes
Along with underestimating closing costs, existing owners said these were their biggest mistakes when buying their first home:
- 32% simply didn’t look hard enough;
- 21% underestimated how fast their family would grow;
- 18% didn’t weigh the impact of being in a less-than-ideal location, or they bought a fixer-upper and were unable to complete the repairs timely enough.
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