Nearly three quarters of homebuyers reported they sought out financing information before they began their home search.
According to a recent survey from loanDepot and mellohome, that number increases when you consider just first-time buyers. More than 85 percent of first-time buyers had their financing options in order before they began their search for a property. It’s not surprising, based on the lack of inventory and rapid-fire pace the housing market has seen lately.
“Homebuyers have learned that getting their financing in order upfront helps prepare them to shop for a home with confidence and puts them in a more advantageous, competitive position, especially in tight markets,” said Chris Heller, CEO of mellohome. “With the lack of inventory we’ve seen in recent years, it’s especially important to be armed with a pre-approval when that perfect home appears.”
More than two-thirds of homebuyers said finding the right home has not been easy, and nearly half said they want a faster and easier homebuying experience. Thirty-four percent of buyers were confused about mortgage fees, and close to 31 percent are worried about finding the right loan. However, more than three-quarters said their Realtor® and mortgage lender were communicating, which again proves the helpfulness of hiring an agent.
The homebuying process is not always easy, and nearly half of consumers want a faster and easier experience when purchasing. More than a quarter of respondents said the homebuying process was time-consuming, while 24 percent found it challenging.
“Today’s homebuying industry must stay ahead of where technology is driving customer expectations,” said Anthony Hsieh, CEO and Founder of loanDepo. “We can no longer act as if real estate and mortgage are completely different experiences for the customer. Those industries are converging.”