According to a recent consumer survey by TD Bank, home buyers remain stressed about the mortgage process, even though the lending environment has improved. Overall, buyers want better information about the mortgage process up front, in order to understand their options and prepare for the costs.
The survey, which largely targeted Millennial home buyers, revealed that 62% of respondents spent $2,000 more on financing costs than expected. Nearly 50% of respondents said the financing costs were up to $5,000 more than expected.
Other trends revealed by the home buyer survey include:
- 14% of home buyers researched their lenders through social media.
- About 50% of home buyers put less than 20% down on their first home.
- 56% of Millennials obtained financing through an affordability program.
- About 42% of Millennial buyers have a co-mortgagor other than a spouse.
Mortgages have gradually become more accessible in recent years, with down payments as low as 3%, and a slight easing of underwriting criteria. Despite this, home buyers are not finding transparency nor simplicity in the mortgage process – especially when it comes to online information.
Surveyed buyers also expressed a desire for home financing seminars, home buying workshops, and for better customer service when dealing with lending institutions.
Fortunately, there is a solution for Metro Columbus home buyers! Buyer-Clients of Buyer’s Resource Realty Services are given a 140-page “Educated Buyer Notebook” upon signing on to find their home! The Notebook has an extensive financial section which helps demystify the lending options available, and explains the process involved. It includes checklists, a glossary, and questions for you to ask lenders, to make sure you receive the best loan, interest rate and closing costs. Further, we can offer you an upfront analysis of what a lender might pre-qualify you for, so you are better prepared.
Home buyers who become Buyer-Clients of Buyer’s Resource Realty Services have the advantage of true fiduciary representation. This means we can help you examine your lending options, explain your choices, and provide you with objective guidance.
We also have a network of local, reputable mortgage lenders who will take the time to discuss your needs, and find the best loan programs for your situation. Whether you already have a lender in mind, or you’re starting from scratch and want to explore options, we can help!
As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
