Few Homebuyers Familiar with Affordable Loan Programs

A recent TD bank survey reveals that just one in five homebuyers are familiar with affordable loan programs. Findings from the survey fuel growing concerns among real estate professionals that lenders are not providing enough information to borrowers about the programs. Of the 150 real estate professionals surveyed, 70 percent expressed a desire for lenders to make affordable loans, such as FHA and VA loans, easier to access.

According to the survey, only 20 percent of homebuyers are even aware that such programs exist. Real estate professionals reported that 64 percent of buyers consulted them for guidance during the lending process, spending an average of 2.5 hours discussing loan options. Nearly 80 percent recommended a lender.

The survey also concludes:

• More than half of the real estate professionals surveyed believe buyers are compromising their wants in order to buy a home quickly.
• Real estate professionals consider a number of factors when recommending a lender – the most important of which is closing time. Other factors include understanding of buyer needs, non-commitment to pre-approval rates, and not overpromising.
• Eighty percent of real estate professionals believe mortgage-focused banks are easier to work with.

With 40 percent of real estate professionals believing it is now more difficult than ever to secure a loan, it is crucial for homebuyers, especially first-timers, to educate themselves through the help of a professional. For more about affordable loan programs, visit makinghomeaffordable.gov.

Source: Real Trends

Reprinted with permission from RISMedia. ©2014. All rights reserved.