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Survey Highlights Consumer Need for Clear Lending Guidance

Homebuyers polled in a recent survey rated their experience more positively than those in 2013, but when it comes to simplifying and de-stressing the experience, lenders still have some progress to make.

In a survey of 1,500 consumers who purchased a home in the last 10 years, TD Bank found 69 percent would describe their experience with their lender as “excellent” or “very good,” up from 66 percent in its 2013 survey. Another 25 percent ranked their lending experience as just “okay.”

Sixty-two percent rated the homebuying process as a whole as excellent or very good, down slightly from last year’s survey.

Rating specific aspects of their experience, 66 percent said they were satisfied with the mortgage approval process, down 1 percentage point year-over-year. Also down was the number of consumers who said they were happy with their experiences in finding a home, reflecting frustrations stemming from inventory constraints in the couple of years.

On the lender side, “accessibility” and “responsiveness” ranked highest among consumer experiences, while relatively fewer respondents were happy with their lender’s efforts to explain options or help them understand the process.

“The results of this year’s TD Bank Mortgage Service Index indicate that there is still a need to provide consumers with more information and clarity in the home financing process,” said Michael Copley, EVP of retail lending for TD Bank.

Given their worries about the complexities of borrowing, it may come as no surprise that more consumers reported their homebuying experience was “extremely” or “very” stressful—30 percent compared to 24 percent last year.

Randell Gillespie, regional sales executive for Bank of America, likened the borrower experience to preparing an inexperienced traveler for their first flight: If they know what to expect and how to pack, the security line doesn’t look as intimidating.

“In what our teams see, those who would describe [homebuying] as stressful is due to a lack of knowledge, preparation, and education,” he said. “When you have [the education], you’re not stressed. We have to do a better job in our industry of educating folks.”

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