Credit Scores Matter

The importance of homeownership comes from financial knowledge; it’s what turns renters into homeowners and, potentially, homeowners into real estate investors. Most people in the industry would assume that Gen Z and the younger generations don’t understand the value of homeownership, but studies prove they’re wrong. Most teens (88%) would like to own a home someday, according to a survey conducted by Wakefield Research on behalf of Junior Achievement USA and Fannie Mae. A survey of 1,000 teenagers ages 13 to 17 in the United States found most (85%) believe owning a home is a part of “the good life,” compared to nearly as many adults (87%). But results show they are not quite financially literate enough to understand all the aspects that go into homeownership. Fewer than half (45%) could correctly identify the definition of a home mortgage and 76% said they lacked a clear understanding of credit scores. "There's been this theme that younger Americans aren't interested in homeownership, but the results of this survey contradict that assumption," said Jack E. Kosakowski, president, and CEO of Junior Achievement USA. "Teens appear interested in owning a home someday but seem to realize they need more information on how to do it." While nearly all teens (96%) know credit scores play an important role in the ability to purchase a home, approximately 3 in 4 (76%) said they understood credit scores only “somewhat,” “a little,” or “not at all.” Source: National Mortgage Professional