Buyers dread mortgage application, but love their lenders; what gives?
The good and the bad of mortgage application
It seems most buyers dread the mortgage application process. According to a new survey, many even compare it to a doctor or dentist appointment.
Despite these unsavory comparisons, lenders are holding their own. Most buyers are happy with their service and confident they got the best deal possible.Verify your new rate (May 26th, 2018)
What buyers hate
According to the latest Mortgage Survey from FREEandCLEAR, 41 percent of buyers say their mortgage experience was similar to an annual physical, while another 34 percent said it was like going to the dentist. But 22 percent compared it to “business with a friend.”
“The results of this question reveal that most borrowers put the mortgage process in the ‘unpleasant but necessary’ category,” FREEandCLEAR reported.
“People usually do not look forward to their annual physical and most people certainly do not enjoy going to the dentist, but we all should do these things regularly despite how uncomfortable they are.”
More than half of buyers said paperwork was the biggest challenge, with qualification, rate/costs and terminology coming in next.
“Although all mortgage documents are intended to serve a specific purpose, usually legal or regulatory, the sheer amount of paperwork creates significant difficulties for borrowers,” FREEandCLEAR reported.
“Fifty-six percent of survey respondents cited paperwork as the most challenging part of the mortgage process … sometimes too much information or documentation, in this case, can be overwhelming.”
What buyers like
Though the survey shed light on some saddening buyer opinions, it looks like lenders are handling the challenge well. A shocking 78 percent rated their satisfaction with their lender a seven or above (on a one to 10 scale).
Another 86 percent gave their lender’s knowledge a seven or higher, while 70 percent said the same of their trustworthiness.
“We admit that the results for this question surprised us,” FREEandCLEAR reported. “Given everything that happened with the mortgage market crisis, how many mortgage borrowers got burned and how certain lenders acted, we anticipated that the level of trust borrowers have in their lender would be relatively low.”
The survey shows buyers even more satisfied with the transaction than their lender. A whopping 90 percent of those surveyed said they got a good deal on their mortgage.
Get today’s mortgage rates
Today’s mortgage lenders are delivering serious satisfaction and historically low rates. Shop around and see what rates you qualify for today.Verify your new rate (May 26th, 2018)
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