First-time homebuyers feel unprepared, discriminated against, a new survey shows

Aly J. Yale
The Mortgage Reports contributor

Homebuying is hard

First-time homebuyers don’t feel prepared to buy a home. According to a new survey, nearly half expect to make a costly mistake, while even more say buying a house is more difficult than it should be. Some even say they’ve been discriminated against in the process.

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First-time homebuyers face uphill battle

According to a new survey from the homeownership education site Framework, 58 percent of potential first-time homebuyers say the process is too difficult, while 53 percent of recent buyers said the same. 

What’s worse? More than 44 percent of would-be buyers think they’ll make a costly mistake when purchasing a home. A whopping 36 percent of recent homebuyers said they already did.

Affordability is a top concern among first-time buyers, with 40 percent saying it’s on their mind. Property taxes, in particular, are a point of contention — especially with prospective buyers. For buyers who just recently went through the process, affording home repairs and maintenance is the No. 1. Concern.

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Discrimination abounds

First-time homebuyers are also reporting discrimination as a major player in their buying journey. Out of recent buyers, nearly a quarter said they experienced discrimination based on race, gender or another trait when buying a home. Of prospective buyers, 43 percent have.

Hispanic and black first-time buyers were the most likely to report these experiences.

Qualifying for a mortgage: What lenders don’t consider

Homebuyers are also reporting overall unpreparedness. Only 30 percent of recent buyers took a homeownership class before buying their home, and nearly 60 percent of potential buyers don’t feel well-prepared for the process.

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Verify your new rate (Aug 9th, 2020)