What do home-buyers complain about the most?
It isn’t uncommon for people to run into problems during the home-buying process. It can certainly get confusing, and some lenders simply don’t provide the sort of assistance necessary for people to go from mortgage application to closing without a hitch. The first step to eliminating these issues for borrowers, is to understand what they are.
The Consumer Financial Protection Bureau broke down complaints it received in 2013, and found that the vast majority of the issues consumers had were with making payments, or an inability to do so. More than half, or 59 percent, ran into problems after finding themselves unable to pay off loans. Another 26 percent complained about making payments, specifically escrow accounts, collection and simply paying off their loans in general.
Besides payments, what else do home buyers take issue with?
Behind mortgage payments, there were a number of complaint categories that were substantially less common, but still important to solve. Behind an inability to pay off loans and making payments, the most common complaints focused on the application process. One of the most important things for people applying for home loans is to complete the process quickly, according to business software company Zarion. They don’t want to get caught up in an application that stops and starts like a broken-down car. Speed and transparency will help lenders improve the quality of their service.
Another issue for borrowers is the actual signing. The settlement process and costs associated with signing are common problems. Lenders should be sure to inform borrowers of all costs associated with the mortgage application process as soon as they can, to avoid giving people false impressions about what they will end up paying. This should help alleviate some of the concern among borrowers.
Turning the housing market around
Another problem the CFPB hears about often is consumers’ inability to receive a credit offer. One thing that has held many people back in the housing market is obtaining credit – standards are tight and lenders are simply reluctant to make risky loans. This could change, however, as the housing market improves and lenders grow more comfortable with offering loans to people with not-ideal credit scores.
Though gradual, the housing recovery is entering its latter stages - and as more people prepare to enter the housing market, lenders should be making an extra effort to offer superb customer service.
By: Equity National June 24, 2015 Closing, Escrow