Homeownership is still part of the American dream

Homeownership is still the American dream.

According to a recent Wells Fargo survey, 93 percent of respondents believe that homeownership is an achievement to be proud of, while 86 percent said that homeownership is a dream come true. Nearly three-quarters agree that now is a good time to purchase a home.

But 76 percent think that the homebuying process is a “hassle,” and 88 percent said it involves “many” unanticipated costs.

Regardless, 38 percent of participants are considering buying a home in the next two years, including 58 percent of millennials, 51 percent of African Americans and 47 percent of Hispanics.

The fees and other costs of housing are what most potential homebuyers put on their “must-know” list when shopping for a home. Additionally, they want to know what kind of home they can afford with their finances, as well as down payment options.

Participants were almost equally split about whether they preferred to receive education about homebuying from an online source at their own pace, or in-person with a knowledgeable person, like a real estate agent, according to the survey. Yet, when it comes to the mortgage process, more than half agreed they would prefer to meet in person to discuss, and 88 percent want to see each step in the mortgage process.

While lack of knowledge about the homebuying process does stop some from purchasing,  23 percent said it’s “difficult” to save enough for a down payment, while 20 percent aren’t willing to make the commitment to an area when purchasing a home.

Additionally, mortgages, and the confusion surrounding them, seem to be holding off many would-be homeowners. Thirty-four percent who had applied for a mortgage, or at least started the application process, had a negative experience, most frequently attributed to paperwork and the amount of it, or the lengthiness of the process.

And 40 percent incorrectly believed that a 20 percent down payment is mandatory, especially among Hispanics (50 percent) and African Americans (48 percent).

Yet, most participants understand the seriousness of homebuying, as 91 percent said that “getting a home loan should be a thorough enough process to ensure the borrower understands what they’re getting into.”