More homebuyers seek finance offering from home builders

by Candyd Mendoza01 Jul 2019

More Americans who financed their home through their home builders were satisfied with their experience, according to loanDepot’s latest national survey.

More than a third (39%) of those surveyed said they were offered financing. More than three quarters of respondents who financed through a home builder said they were satisfied with their financing experience, citing ease of use, competitive rates and incentives as the top reasons.

The survey showed that many respondents found this new-home construction experience to be pleasant (40%), easy (33%), and convenient (28%). However, 35% reported that it was time-consuming and 28% found it stressful.

When it comes to recommendations, family and friends were the top sources of awareness for home builders, as 30% of the respondents asked them for referrals. An introduction from a realtor followed at 28%.

"Home builders who leverage the services of experienced new-home lenders—and especially those that focus on exceptional borrower experiences—will definitely have the advantage in competitive markets," said Dan Peña, senior vice president of national joint ventures at loanDepot. "For example, we created our mello smartloan to deliver the financing experience that customers demand. And, the efficiencies created by the fully digital experience can create significant time- and cost-savings for the builder and borrower alike. It's a win-win for everyone."

Over two-thirds of respondents thought of financing first and were pre-qualified or pre-approved with a lender before starting to look for a home, according to the survey.

Lastly, almost half (49%) of the respondents who have not bought a newly constructed home considered financing costs as a barrier, as well as neighborhood location (34%), and length of time to complete the home (32%).