Buying a new home is a major milestone in a person’s life. It’s also one of the most stressful and difficult financial transactions most people will ever undertake.
Good lenders have always focused on making the home buying process as smooth and stress-free as possible. However, regulations passed over the past five years have overwhelmed lenders to the point where they have to pay more attention to highly complex laws, leaving the customer experience as an afterthought. With a minefield of investor and regulator rules to traverse, making sure that the consumer is enjoying the process is difficult to master.
The mortgage process can be a far more enjoyable part of the home buying experience for borrowers if we pay attention to what they want out of the home buying process and quit doing what they hate.
1. They hate being confused. No one likes to be in a situation where the details about the transaction are unclear, especially one that involves as much money – and emotional attachment - as a mortgage for a new home. Connecting easily and offering an open communication line with borrowers is an excellent way to make this an exciting time in their lives instead of a confusing, stressful mess.
2. They hate seeing errors on their documents. Errors on documents erode the consumer’s faith in the lender they have chosen. Today, new TRID rules require the lender to provide information to the borrower much sooner in the process, giving them plenty of time to determine whether their chosen lender can “get it right” or not. Consequently, the need for accuracy in the documents provided to the consumer has never been higher. Failure to deliver accuracy is already resulting in lost deals. Accuracy is one step toward building trust, and it is vital if the lender hopes to create an exceptional customer experience.
3. They hate having their personal financial data stolen. While it’s true that Millennials are more likely to live in the online world and take interacting with electronic systems as a matter of course, they also demand a high level of data security from the vendors they work with. Failure to meet these requirements will cost lenders more than the current deal, as those borrowers will spread the news of any failure far and wide.
4. They hate delays. Ultimately, this is the home loan borrower’s biggest concern. They know they must have financing arranged and ready to be delivered in advance of the contract date or they run the risk of losing the deal. In markets where inventory is low and buyer demand is high, speed to close becomes critically important. We list it last, but really speed is one of the consumer’s primary concerns.
In our experience, the faster the process moves, the happier the borrower will be. Coming back to the borrower for additional information or to gather updated information slows down the process and irritates consumers. Download our white paper on this topic today to find out more about making the consumer’s mortgage experience excellent.