Hispanics’ Ready to Buy but Lending Experience Falls Short
The Index found that Hispanic home buyers have had a less satisfying experience when buying their last home, yet are more likely to buy a home in the next year compared to the general population:
43% had an “extremely” or “very stressful” experience when buying their last home
23% said the mortgage process prevented them from closing on time.
The index also indicated that Hispanics have an optimistic outlook on home buying:
32% are extremely or very likely to buy a home in the next year
80% feel it is a good time to buy a new home.
Michael Copley, Executive Vice President, Retail Lending, TD Bank explains:
“Overall, survey results indicate that Hispanics are eager to purchase a new home, but in order to reduce stress in the process and feel satisfied with the home buying experience, they will need resources that can provide increased communication and education throughout the process.”
The Mortgage Service Index also revealed that:
54% of Hispanics found the process of getting approved for a mortgage to be “excellent” or “very good.”
39% turn to bank/lender websites as a source of information.
40% of Hispanics said it took three to seven days for preliminary approval followed by 21% who received approval in one to two days and 17% who received approval in two weeks.
26% said the length of the mortgage process from application to approval took three to four weeks while 23% said it took one to two months.
Personal Mortgage Process Important
The in-person experience is very important to Hispanics too. Here is what the index revealed:
70% said they applied for their mortgage in person.
16 % have applied for their mortgage over the phone.
14% of Hispanics applied for their mortgage online.
Bank/Lender Expectations Met, But Still Room for Improvement
In terms of the overall home buying process, the majority of Hispanics rated their lender as “excellent” or “very good” in the following aspects of interaction with their lender:
60% Honesty and transparency
56% Simplicity in obtaining a mortgage
54% Helping them understand the entire mortgage process
52% Explaining the mortgage and options available
51% Providing easy to use online tools
The Mortgage Service Index also revealed several areas where improvements can be made to help increase Hispanic buyers’ overall satisfaction:
57% of Hispanics found their lender accessible
53% found them responsive
53% of Hispanics believed their lender kept them informed throughout the process
51% felt their lender had provided them with a greater sense of confidence
62% of Hispanics expected the mortgage rate they received, said it was higher than expected.
The survey concluded:
“The TD Bank Mortgage Service Index demonstrates that Hispanic homebuyers expect their mortgage partner to be honest, accessible and straightforward throughout the home buying process.”