The study, conducted by Ally Bank, surveyed more than 2,000 people. According to Ally, 67% of respondents have either had a mortgage or plan to apply for one in the future. But among those who had ever had a mortgage, only about a third (37%) were satisfied with the process.
Ninety-eight percent of respondents said that interest rates were a big factor in their decision to choose a lender. Closing costs were another big issue for prospective homebuyers, with 96% of survey respondents saying closing costs would factor into their decision when looking for a lender. Of those who were dissatisfied with the mortgage process, 39% cited too-high closing costs as a reason.
But that doesn’t mean originators don’t have to worry about customer service. Good service was also considered vital by survey respondents, with 93% saying it factored heavily in their decision when choosing a lender. And of those who were dissatisfied with the mortgage process, nearly half – 48% – said their dissatisfaction was due in large part to poor customer service. Forty-six percent also complained of poor communication from their mortgage lender.
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What influences borrowers’ decisions in taking out loans?
Prospective borrowers are most concerned about interest rates and closing costs when they’re choosing a mortgage lender – but convenience and customer service are also high on their list, according to a new study.