Zillow has released a new “BuyAbility” tool to help consumers find homes they can actually buy, with more variables in mind.
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Signaling its continued focus on growing its mortgage business, Zillow announced Tuesday it has released a new feature that it says will help buyers filter out homes they can’t actually afford.
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Zillow Home Loans has created a so-called BuyAbility tool that provides homebuyers with real-time estimates tailored to their realistic budgetary needs.
“Instead of wasting time on homes they can’t afford, shoppers can now clearly and quickly identify homes within their actual budget on Zillow,” the company said in a news release.
The company notes that buyers with higher or lower credit scores and debt-to-income ratios may qualify for different mortgage rates, impacting the size of the mortgage they qualify for and ultimately the home they can buy. did.
The company said the tool will help shoppers as the amount they can afford fluctuates from week to week due to changes in mortgage rates.
“Mortgage rates have been unusually high this year,” Orphee Divongi, senior economist at Zillow Home Loans, said in a statement. “Improving inflation and more balanced economic activity could lead to a slight decline in mortgage rates into the new year.”
“That means more affordability and more choice for homebuyers,” Divongai said. “Buyers are in a stronger position to act quickly when the right home comes into BuyAbility, bringing them one step closer to the American dream of homeownership.”
The new feature also comes as Zillow looks to grow the mortgage side of its business.
The BuyAbility tool includes[住宅ローン]Access from tab. Users are asked to enter the state in which they wish to purchase, their total annual income, credit score range, total monthly debt, down payment amount, and monthly payment amount. they are comfortable.
The app then displays the maximum loan amount and recommended purchase price that the buyer could qualify for, based on the monthly payment amount the buyer said they were comfortable with.
Zillow tags homes within so-called BuyAbility range as users browse the app.
Zillow has launched the new feature on its app in every state except New York and plans to add it to its desktop site soon.
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Editor’s note: This story has been updated to reflect which homes are tagged as “BuyAbility.”
