Markets & Economy

Experian data show 7 of 10 first-time buyers are not preapproved

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Some real estate groups have labeled this summer as the best buying season since 2006; however, a new survey from Experian Consumer Services shows that a number of potential first-time buyers may have to wait, as they are not preapproved for a loan and must work on their credit in order to obtain a low interest rate. Roughly 67 percent of future buyers are not preapproved, and 45 percent of potential first-timers have to delay the purchase of a home because they need to boost their credit. These findings are based on a survey of 250 individuals who intend to purchase a home in the next year and 250 people who have recently acquired a home. Fifty-eight percent of future homebuyers indicate that they are actively working to improve their credit in order to qualify for a better home loan interest rate. Specific credit-improving actions taken include: Paying off debt (55 percent). Paying bills on time (54 percent). Keeping balances low on credit cards (28 percent)...