Dive Brief:

• The American dream of homeownership is strong, but potential homebuyers have little understanding about how to turn that dream into reality, according to Wells Fargo’s second annual “How America Views Homeownership” survey.

• While 65% of the 2,016 adults in the survey said homeownership “is a dream come true” and 72% believe now is a good time to buy a home, many overestimated how high their credit scores, income and down payments need to be in order to qualify for a mortgage.

• Among renters who participated in the survey, just 12% said they do not aspire to own their homes.

Dive Insight:

An inflated perception of how hard it is to qualify for a mortgage could be contributing to the reluctance of young adults to become first-time homeowners.

In the survey, 45% said they believe they needed a credit score of 780 or greater to qualify for a loan and that they have to put down 20%. While those would contribute to a loan approval, they are not required for all transactions.

In a separate survey by Chase in May, 43% of potential homebuyers said they are “not at all concerned” by their lack of understanding of the mortgage process.