December 12, 2014 4:21 am
“From describing what will happen during the process in terms a customer can understand to explaining the benefits of different options, loan representatives set the tone of the experience,” says Craig Martin, director of mortgage practice at J.D. Power. “A potential challenge with first-time homebuyers is that they may be afraid to appear uninformed, so they won’t admit when they are confused or don’t understand something. For a lender to truly stand out, their staff must foster relationships that promote open and honest communication.”
The study reveals that first-time homebuyers want a transparent mortgage process; 43 percent of all first-time homebuyers indicate they do not completely understand the process. A lack of experience and uncertainty about the process may influence how they first inquire about a mortgage; 48 percent chose to meet with local lenders in person for advice tailored to their specific situations.
The study also found:
- The majority (54 percent) of first-time homebuyers indicate they don’t fully understand the different loan options available to them. Just 41 percent reported thorough explanations of the types of loans, terms, special programs, fees and options to reduce their down payments.
- Consistent communication is another important factor in a positive borrowing experience. Customer satisfaction falls significantly when loan representatives fail to call customers back as promised.
- The closing experience is often confusing for first-time homebuyers. Forty-four percent indicate that the closing agent did not completely explain all of the closing documents.
Source: J.D. Power
Published with permission from RISMedia.