ORLANDO, Fla. – March 3, 2017 – What happens after a home sale closes and the new buyer has keys in hand? In the days and months that follow, how do most new homebuyers feel?
To determine new homeowners’ satisfaction, NerdWallet created its first Home Buyer Reality Report. It looked at owner satisfaction with the buying and lending process, mortgage preapproval, borrowers who failed to make it to closing and successful buyers’ regrets after they sign their final document.
Florida stood out in the study for mortgage failures: Almost 1 in 5 mortgage applications (17.1 percent) get turned down, making it the top state in the study for frustrated mortgage applicants. West Virginia ranked second with 15.7 percent of mortgage applicants failing to get a loan.
On the flipside, Minnesota had the lowest rate of mortgage rejection at 7.7 percent, followed by Alaska with 8.2 percent.
Buying a home – and finding the right mortgage – is a journey that can test your grit and resolve. If you haven’t done the proper research and you don’t know what to expect from the process, it can be even more stressful. Your credit history, income, assets and savings will be under scrutiny, and what you don’t know about mortgages can hurt you.
Nationwide, 6 percent of survey respondents said they were denied a loan: 50 percent on their first try and 25 percent more than once:
79% were told why their mortgage was denied
41% thought the denial unfair
33% thought it was embarrassing
35% said it pushed them to improve their financial situation
52% denied to a high debt-to-income ratio; 39% credit history/score and 25% insufficient income
“Borrowers who don’t understand the mortgage process or don’t know enough about their own credit history tend to hit obstacles or be rejected when applying for mortgages,” says Tim Manni, mortgage expert at NerdWallet. “They also tend to feel regret after their deal is done, even if they succeeded in buying a home. That tells me borrowers aren’t doing enough research – on themselves or the mortgage process – before applying for a home loan.”
Other key findings
41% of mortgage applicants felt didn’t know all their loan options during the process
49% said they would have done something differently
28% felt they weren’t a priority to their mortgage professional
42% said the homebuying process was: stressful, complicated (32%) or intimidating (21%)
41% said the process was manageable; 30% said it was rewarding
27% of millennials got a mortgage rate they thought they could afford when purchasing
11% of millennials didn’t feel financially secure after purchasing
26% of Gen X applicants said the mortgage experience wasn’t positive compared to millennials, even though they were just as likely to be approved
25% of millennials, 20% of Gen X and 10% of baby boomers were approved at a higher interest rate than expected
57% of millennials, 61% of Gen X and 38% of boomer homeowners had regrets, saying they would do things differently the next time around
Author:Linda Stevenson Phone: 603-264-6920 Dated: March 6th 2017 Views: 145 About Linda: ...
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