6% of consumers think Fannie Mae was the first female senator

by Steve Randall26 Oct 2017

Consumers often lack knowledge about the mortgage market and hold some incorrect views about how it works according to a new poll.

With many would-be first-time buyers struggling to save a downpayment, one in five believe that they need a minimum of 5% while almost half of respondents ranked themselves 5 or lower on a 10-point scale of mortgage knowledge.

The survey was conducted by FREEandCLEAR and also reveals that 6% of respondents think Fannie Mae was the first female senator, 86% were not taught anything about mortgages at high school and 83% did not learn about home loans in college.

For information, lenders are the top source followed by real estate agents. The internet is used by a quarter of consumers to research the best loan but almost two-thirds only compared one or two lenders before applying for a mortgage.

Their existing bank (30%) or real estate agent referral (29%) were the top ways to find a mortgage lender with just 9% using the internet.

Half of consumers contacted a big bank when arranging their mortgage with local banks and mortgage brokers next at 38% each.

An overwhelming 90% of respondents said they were happy with the deal they got from their mortgage lender while 56% said the paperwork was the most challenging part of the process.

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