Home Loan Study Shows Borrowers Focused on Economics of Mortgage; Service, Convenience Follow

Consumers have many concerns about the mortgage process, and a new survey suggests the mortgage lender that offers the best interest terms earns the advantage.

The study conducted by Ally Bank also noted while consumers say interest rates and closing costs are highly important factors in the decision on choosing a lender, a reputation for excellent customer service and convenience is not far behind.
The mortgage survey was conducted online within the United States by Harris Poll on behalf of Ally from March 28-30, 2017 among 2,167 U.S. adults ages 18 and older in an effort to understand consumer preferences when it comes to choosing a lender for a home loan.

Other study key findings:

–Two thirds of Americans (67 percent) have had a mortgage and/or plan to apply for one in the future;

–Among those who have ever had a mortgage, only slightly more than a third (37 percent) were “very satisfied” with the mortgage application process;

–Four in five Americans who ever had a mortgage/plan to apply for one in the future (81 percent) said the total amount of closing costs did/would factor into their lender decision;

–93 percent of Americans said a reputation for excellent customer service and convenience would be very/somewhat important in their decision on which lender to choose.

Without exception, the survey reported, Americans of all ages and regions said interest rates are an important factor in securing a mortgage, with 98 percent noting it as an important factor in their decision of which lender to choose. This was followed by 96 percent saying closing costs as very/somewhat important, while 93 percent indicated a reputation for excellent customer service and convenience was important as well.

Conversely, among those who have ever had a mortgage, only slightly more than a third (37 percent) were “very satisfied” with the mortgage application process, while 15 percent were “not satisfied.” Nearly half of those who were not satisfied with the process cited poor customer service (48 percent) or poor communication (46 percent) from their mortgage lender, with somewhat fewer citing closing costs (39 percent) or interest rates being too high (24 percent).