Cost is still one of the most critical components for consumers when it comes to the residential application process, according to a survey conducted by the Carlisle & Gallagher Consulting Group.
The firm, which surveyed 618 respondents online, said 84% of consumers rated cost as one of the five most important issues tied to the mortgage process. Besides cost, other important factors include trust and quality customer service.
During the mortgage application process, 34% of consumers said they would be willing to pay more for a mortgage if it comes with superior customer service. Also, 39% of “pay more” respondents said they would prefer to obtain a mortgage from their primary bank.
“Pay more” consumers tend to be younger, in the 18- to 35-year-old range. Cost conscious borrowers generally are 50 or older and just want the basics during the origination process.
“The ‘online savvy shoppers’ who are younger tend to value customer relationships and often want to be treated as a preferred customer,” Tom Mataconis, vice president of consulting at Carlisle, told National Mortgage News.
"Banks must align to customer values to win mortgage market share," Mataconis said. "Banks that incorporate on trust and customer service as differentiators will gain market share in the new normal. Consumers are a very captive group of folks and it is important to be receptive to their messages and needs."
According to the Charlotte, N.C.-based management and technology consulting firm, consumer confidence towards mortgages looks strong.
For future homebuyers, 37% expect to purchase a new home in the next 10 years. Out of this total, 40% expect to obtain a new property in at least three years, while 44% believe it will take longer than three years.
Additionally, 46% of survey respondents expect their home values to grow significantly over time, compared to only 4% who think their properties are going to lose financial returns on their home investment.
"Even during this crisis, people are still looking at homeownership as something to aspire to. People still want to own their own home,” Mataconis added.
