COSTA MESA, Calif.— A new, national survey on home buying and credit has found that many future home buyers, especially first-time buyers, do not feel confident about their credit score status.
In fact, 34% of future buyers say their credit score might hurt their ability to purchase a home and 45% have delayed a purchase to improve their credit score, according to Experian, which conducted the survey.
The survey found many future homebuyers are taking action to improve their credit profile. Almost 70% of survey respondents are paying their bills on time and 60% are paying off debt. In addition, 28% of future homebuyers surveyed are keeping balances low on credit cards and 15% are taking steps to protect their credit information from identity theft and fraud.
Experian noted that products such as its Experian Credit Tracker offer not just an Experian credit report and FICO Score, but many educational resources.
The survey found that low credit scores have led to one in five reporting they are likely to opt out of the loan process or purchasing a home all together for the next five to 10 years. Of those deciding to simply delay a home purchase, 45% reported the delay was made in order to secure better interest rates.
Other key findings:
- 35% of future buyers said they do not know what steps to take to qualify for a larger loan
- 29% of consumers surveyed would purchase a more expensive home if they had better credit and could qualify for a larger loan
- Three out of four future buyers are not pre-approved for a home loan