No one
knows better than industry professionals just how complicated choosing the
right home mortgage loan can be for first time homebuyers, except maybe the
buyers themselves. The 2014 U.S. Primary Mortgage Origination Satisfaction
Study by J.D. Power states that a full 54% of first time homebuyers don’t fully
understand all of the options available to them.
Surprisingly,
only 4 out of 10 people felt that their mortgage representative took the time
to explain everything in detail so that they could make an informed decision.
As you know, there’s a lot to consider when deciding which loan is best suited
to your needs, not to mention any special programs that might be available at
the time. First time homebuyers need to fully understand the different types of
loans available (fixed rate, adjustable rate, etc) as well as any options that
might help them to lower the amount of cash they will need for the down
payment.
44% of new
homebuyers also stated that their agent did not take the time to fully
explain all of the closing documents. I find this to be surprising. While many
of the documents required to be signed by the buyer are at least somewhat self explanatory, some of them
can be a bit confusing and definitely require some elaboration on the part of
the agent. In comparison, 26% of buyers that have bought a home before also
felt that their agent was less than thorough in this area.
This being
said, the study showed that overall 78.6% of first time buyers were satisfied
with the entire process of obtaining their first mortgage. It’s important for
all of us involved in the process to remember that 1st time buyers
are experiencing the most complicated (and sometimes intimidating) application
process that they have ever been
exposed to and they need as much guidance and reassurance as possible. We
industries pros take many things for granted that our clients simply do not
understand and we must always try our
best to reassure them.
So how
much of this is the responsibility of the agent? All of it! Obviously we are
not mortgage professionals, but if we cannot answer any questions that our
clients may have, it is our
responsibility to make sure that someone else does. Considering the fact that a
full 44% of first time buyers felt that their agent did not explain everything
as well as they had expected, this is obviously one area that needs a lot of
improvement. I have often asked myself “What can I do to better serve my
clients? Well, here’s the answer! I can take the time to be sure that all of
their questions are answered so that they can feel more comfortable and
confident about the entire home buying experience.
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