Getting a mortgage in today’s lending market isn’t easy and can be a complicated, stressful process for borrowers, according to findings from a national survey by MortgageMatch.com of 1,000 adults.
About 70 percent of Americans say access to affordable mortgages is a serious problem, and that understanding the mortgage process and lenders’ requirements is even more difficult and stressful than getting the mortgage itself or even negotiating the sale price on the home.
Nearly 80 percent of recent home buyers, particularly those earning $50,000 a year or more, say getting a mortgage was much more difficult than they had expected. And nearly a quarter of home buyers said waiting to hear if they were approved for a mortgage was even more stressful than waiting to hear if they landed a job.
Among the survey’s other findings:
* 10.8 percent report their lender gave them a higher interest rate than what they were originally quoted.
* 22.9 percent said applying for a mortgage was challenging because documentation requirements from their lender kept changing.
* 21.6 percent of borrowers said their lender used too much technical jargon.
Over the past few years, a lot of buyers have had a hard time not only getting a loan but getting through the process, says Sue Stewart, senior vice president at Move Inc., which is the operator of MortgageMatch.com. This survey is a wake-up call and clearly points to the fact that borrowers want a process that's easy to understand and follow. They don't want surprises and they 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.
Source: “Survey Shows Access to Mortgages Seen as a Serious National Problem,” PRNewswire (Feb. 8, 2011)