Many consumers aren’t comfortable working with a lender, even 10 years on from the financial meltdown.
More than a quarter, 26 percent, of respondents don’t trust big banks since the housing crash of 2008, and 32 percent, reported they have no familiarity at all with the available mortgage-lending options, according to the Homebuyer Sentiment Survey from Eave Inc., a lender conducting business in Colorado and California.
Even some borrowers with the means to qualify for a mortgage, expressed reservations. Fully 33 percent said the process is too stressful and 72 percent said it should be easier. Meanwhile, 20 percent of respondents said they could afford a home, and their finances were too complex for them to have a realistic chance to secure a mortgage.
Thirty-seven percent claim the Millennial generation has had the most negative effect on the housing market. Interestingly, 44 percent of Millennials agree that their generation is to blame.
Do Homebuyers Hate or Trust the Mortgage Process?
- Twenty-one percent believe the home financing process is completely broken.
- Forty-eight percent believe traditional mortgage lenders will not treat them fairly. Fully 41 percent do not want to interact with a mortgage lending company or banker when buying a new home.
- Fifteen percent would rather break a bone than go through the home-buying process.
- To make the home buying process less miserable 26 percent reported they would give up their favorite vice, including booze, smoking, dessert, etc.; nine percent would shave one year off their life spans.
Home Buying and Relationships:
- Thirty-eight percent said they are likely to buy a home with someone they are not married or in long term committed relationship.
- When asked to rank life events according to importance, respondents rank home buying, No. 3, ahead of having children, No. 4, but behind graduating from college, No. 1, and getting married, No. 2.
- Close to half, 48 percent, wish finding a dating partner also required a pre-approval letter, just like getting a loan for buying a home.