What Homebuyers Want in a Mortgage Provider

When it comes to taking out a mortgage loan, more than half of all first-time homebuyers want to work with a company they consider trustworthy.

That’s according to a recent Bank of America Homebuyer Insights Report, which the financial institution released for the first time in May.

The report found that 63 percent of first-time buyers found trustworthiness the most desirable quality in a loan provider. That was still an important element for 56 percent of experienced homebuyers asked the same question.

At 59 percent, the same amount of first-time buyers as experienced ones preferred lenders who could furnish the right rates.

A little more than a third of first-time buyers preferred referrals when doing business, compared with 28 percent of experienced shoppers.

More experienced buyers than first-time ones considered a loan officer’s accessibility and whether they’d already worked with a mortgage lender.

According to the report, more than nine in 10 homebuyers considered saving for a home important, with a full 85 percent of survey respondents interested in a tool that would help them automatically save for home purchases.

Interestingly, Millennial homebuyers expected help from their parents when securing a mortgage, with two thirds expressing interest in their financial assistance.

“The reality is that many buyers today are balancing important financial priorities," said D. Steve Boland, Consumer Lending Executive for Bank of America, said in the report. “And they are considering all of this while they are coping with student loans, credit card debt and college savings for their children.”

Two-thirds or more of all first-time and experienced homebuyers were primarily interested in finding a single-family residential home in the suburbs.

Bank of America also found that those homebuyers who budgeted ahead of time encountered fewer surprises and seemed generally more satisfied with outcomes.

About four-fifths of these buyers felt comfortable with their mortgage products, the overall costs, and the stress and length of the process.

“In many cases, we found today’s buyers are taking a long-term view of homeownership,” Boland added. “They want to purchase a home that will meet their future needs and understand that, in some cases, that will require saving more, waiting longer and making sacrifices.”