How happy are buyers with the buying process?

How happy are buyers with the buying process?

TD Bank announced results of its inaugural Mortgage Service Index (MSI). The index was generated through a national survey of more than 1,500 consumers who purchased homes within the last 10 years. It was designed to identify best practices and trouble areas in home financing.

happy buyers property guiding“As the housing market continues to rebound, the growing number of buyers should be aware of what to look for in a mortgage partner and seek out a lender who will best guide them through the home financing process in order to create a positive homebuying experience,” says Michael Copley, Executive Vice President, Retail Lending, TD Bank.

Lending experiences positive overall
• Nearly two-thirds (64 percent) of homeowners surveyed found their most recent homebuying experience “excellent” or “very good,” with 67 percent reporting a positive mortgage-approval process.

• Slightly more than half of those surveyed said they had “excellent/very good” experiences during the following: finding a good Realtor (55 percent), home appraisal/inspection process (55 percent), finding the right lender (53 percent) and the length of the entire homebuying process (53 percent).

• 66 percent described their experience with their bank or lender to be “excellent” or “very good.” Among those who had a good homebuying experience overall, 83 percent cited a very good lender experience.

Understanding buyer concerns
• Overall, only 58 percent felt that their lender helped them understand the mortgage process; just 59 percent felt they were kept informed throughout the process; 61 percent felt that the lender showed adequate responsiveness; and 62 percent felt that their lender was accessible.

• Of those who had a very positive homebuying experience overall, however, a higher percentage seemed happy with the loan process. Approximately three quarters of these happy buyers rated their lender as “excellent” or “very good” in responsiveness (74 percent), accessibility (76 percent), and honesty and transparency (76 percent).

• Additional factors that rated high by those who had an “excellent” or “very good” experience were lenders who: instilled confidence throughout the process (73 percent), helped buyers understand the process (73 percent), kept buyers informed during process (73 percent), and explained the mortgage and available options (72 percent).

Buyers under stress
• Even satisfied buyers reported higher stress during the homebuying process with 24 percent saying it was “extremely” or “very stressful,” and 45 percent finding it “somewhat stressful.”

• 65 percent of those surveyed applied for a mortgage in person; 35 percent applied online or over the phone. Of those who cited a good lending experience, 69 percent applied for their mortgage in person; among those who cited a poor lending experience, 47 percent applied in person.

Other key findings

• On average, homebuyers considered approximately two banks or lenders when applying for a mortgage.

• 47 percent obtained their mortgage at a bank where they didn’t have an existing account.

• 82 percent feel that now is a “very good” or “good” time to purchase a home, with 90 percent expecting the housing market to “stay the same” or “improve” over the next six months.

• Consumers use Realtors as information resources during the mortgage process. An equal number of those surveyed (43 percent) obtained information on the lending process from their bank and from their Realtor.

The study was conducted among a nationally representative group of consumers from March 6-11, 2013. The sample size of 1,519 has a margin of error of +/- 2.5 percent. Global research company Angus Reid Public Opinion hosted the survey.

Article from:
© 2013 Florida Realtors®

Realtor® | SWFL Region
Treeline Realty Corp.
239.292.9404 (c) | 239.989.0138 (f)

Posted on April 4, 2013, in Real Estate and tagged , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

C'mon! You know you want to comment...

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: