Owning a house can be wonderful. You finally have a place where you can customize and set up just how you like and as you pay off your mortgage, you are improving your financial well-being.
Buying a home, however, can be a bit frustrating and stressful. There’s a lot of paperwork, a condensed timeline and plenty of questions, all while you are making what may be the biggest purchase of your life.
The American Customer Satisfaction Index (ACSI), a survey that looks at consumer behavior across various verticals, has measured mortgage lenders for the first time. Mortgage lending overall ranked on the lower end of all types of businesses the ACSI covers. This may be a reflection of the stress of the process. Other lower-ranking industries include energy utility companies, gas stations and hospitals. Benzinga spoke with Forrest Morgeson, Director of Research at the American Customer Satisfaction Index, who explained that people are most concerned about anything that is not an easy process.
The survey revealed that while most people found the online experience to work well, some of the areas where buyers felt frustrated included understanding the next steps in the process and the ability of the loan officer to explain the loan process. People were also unhappy with rates and processing fees, which Morgeson said also occurs with bank loans.
Overall, 26% of customers reported registering a complaint with their mortgage lender. Morgeson said that the number of complaints is standard for what he has seen in other industries with complicated processes.
Rocket Mortgage received top marks for customer satisfaction in the survey, with an 80. Chase Bank and Wells Fargo also scored highly.
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- Ways To Reduce Frustration During The Mortgage Process
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Ways To Reduce Frustration During The Mortgage Process
There are some ways to ensure the mortgage loan process goes as smoothly as possible for you.
Research the process of buying a home before getting started. It sounds simple, but many people get so excited about buying a home that they don’t consider the mortgage process. The mortgage and the house generally go hand in hand unless you are paying cash, so make sure you understand what you must provide to obtain the loan, the next steps and how to cover your down payment and closing costs.
Shop around before choosing a lender. Qualifying for a loan is complicated and many people only want to go through the process with a single lender. However, it pays to shop around, not just for the best rates but also for a lender that suits your particular needs. Look at customer reviews and don’t be afraid to ask a friend for a referral.
When in doubt, talk it out. As the ACSI survey indicated, people get stressed out when there is a process they don’t understand or haven’t been through before. Your real estate agent should be able to help you through the rough spots. Ask as many questions as needed to feel like you understand everything happening. This is an important decision and you should feel supported every step of the way.
The mortgage process generally takes between 30 to 45 days. There can be some uncertainty during that period as you buy your home. Rely on the professionals, including your loan officer, to help you navigate this exciting time.