Zillow Home Loans Introduces New Tool to Address Home Buyers' Affordability Concerns

Zillow has added a lead-generation tool for home seekers to better understand what they can afford before buying a property.

The new 'BuyAbility' tool is attached to the Zillow Home Loans arm, giving buyers a personalized, real-time estimate of the home price and monthly payment that fits within their budget and then gives insight into the likelihood of qualifying for a loan.

A Zillow announcement says BuyAbility is a new way for buyers to understand what they can afford, giving them the information they need to make educated decisions. Users can add a few simple inputs unique to their financial situation, such as income, credit score and the monthly amount they're comfortable spending, with BuyAbility then giving a real-time estimate for a home price and monthly repayment according to their budget.

Orphe Divounguy, senior economist at Zillow Home Loans, said:

"What many people don’t realize is that your mortgage rate is highly dependent on your credit score.

"The better your credit score, the lower the rate you’ll qualify for, potentially saving you hundreds of dollars a month. BuyAbility is personalized to a buyer’s credit score, income and down payment, and updated regularly to reflect current mortgage rates, giving home shoppers a true understanding of their buying power.

"BuyAbility is a great starting point for buyers who may be hesitant to look under the hood of their finances, or share personal details with a loan officer."

The announcement went on to say that Zillow Home Loans will extend its offering to allow buyers to shop for homes using BuyAbility—not house prices—as the primary filtration system for more suitable search results.