Lending Tree: 64% of homebuyers are willing to go over budget for their dream home
The sentiment was most prevalent with millennials, with 76% of those ages 24 to 39 saying they’d stretch their budget
A new survey by Lending Tree released Wednesday found that 64% of homebuyers are willing to go over budget to find their perfect house, compared to 25% who said they would not.
The sentiment was most prevalent in millennials, with more than 3 out of 4 (76%) respondents ages 24 to 39 saying they’d stretch their budget to buy their dream home. It was also high in men, with 74% agreeing.
HOME-BUYING STILL HOT THIS SUMMER WITH MORTGAGE DEMAND SPIKING 33% ANNUALLY
Finding a home within budget was the top concern reported by 27% of homebuyers, following narrowly behind location (30%) and slightly ahead of enough space (24%).
FILE - In this Tuesday, July 21, 2020, file photo, Anil Lilly tours his new home, in Washingtonville, N.Y. (AP Photo/John Minchillo, File)
More than a third (67%) of all homebuyers surveyed said that finding a home within budget was the most stressful part of the process. As for first time homebuyers, nearly half (48%) stress most about finding a home within budget, compared with 31% of repeat buyers.
Meanwhile, about 1 in 6 buyers (17%) attributed the stress to low housing inventory in their area, while another 16% attributed it to trying to sell their current home.
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Lending Tree's Chief Economist Tendayi Kapfidze warned homebuyers in the report that they should be "very cautious about going over budget"
"Many people underestimate the maintenance costs of owning a home," Kapfidze wrote. "If you are stretched financially and underinvest in maintenance it can diminish the value of your home."
The real estate lender recommends that homebuyers get a mortgage preapproval, make a larger downpayment on a new home, and limit their contingencies in order to make the homebuying process less stressful.
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The findings come as new home sales surged in July by 13.9% to a seasonally adjusted annual rate of 901,000 units last month, the highest level since December 2006.