Consumers are developing a negative perception of the mortgage origination process, with nearly one third of the respondents in a MortgageMatch.com survey complaining that understanding the process and coping with lenders’ requirements are the most challenging aspects of getting a home loan.
This outranked getting the mortgage itself or negotiating the sales price on the home, both of which nearly one in four consumers cited as the most challenging.
Furthermore, 79% of recent homebuyers said getting a mortgage was as or more difficult than they expected; the complaint was particularly one brought up by buyers whose annual income was $50,000 or more.
When asked about what caused them frustration, 21% of recent homebuyers said waiting to hear if they were approved for a loan was more stressful than waiting to hear if they got a new job. A similar number complained that their originator used too much technical jargon. The same amount complained that finding a lender they considered to be easy to work with was a challenge. Only 7% cited problems with qualifying due to their credit score.
Approximately 11% of those surveyed complained that they were given a higher rate than originally quoted and 9% (12% of female buyers and 6% of male buyers) felt the originator asked for inappropriate information.
Sue Stewart, senior vice president at Move Inc., the parent company of MortgageMatch.com, said the survey is a "wakeup call" to the industry. Consumers "want to be able to depend on their mortgage lender. For most people, the home buying process isn't about the mortgage—it's about getting a home."
