According to a recent survey of residential real estate professionals conducted by TD Bank, nearly 70 percent of real estate professionals responded that lenders should provide easier access to loan programs designed to help make homeownership more affordable. The survey polled more than 150 real estate professionals in the United States.
Findings show that 63 percent of real estate professionals felt that lenders should offer more information on affordability programs. While most of the respondents were familiar with such loans, they reported that only 20 percent of their buyers are aware of affordability programs.
The study also revealed that two in five real estate professionals think there is a low inventory of properties for sale, and that it is harder than ever for buyers to secure a loan. Moreover, more than half of those surveyed believe buyers are compromising their wants simply to buy a home due to the low inventory.
The TD Bank survey also found that:
A quarter of those surveyed consider properties overpriced and fear first-time homebuyers are avoiding the market.
Eighty percent of real estate professionals say that mortgage focused banks are easier to work with.
More than half (57 percent) of real estate professionals responded that lenders are unfamiliar with the local market, yet just 13 percent said that it was difficult to find a lender who knows the local market.
Time Taken Up With Mortgage Talk
The survey also revealed insights into the role real estate professionals play in the lending process and the loan discussions they are having with their buyers.
Sixty-four percent of buyers came to real estate professionals with questions about lending or the loan process during their last sale.
On average, real estate professionals spent 2.5 hours discussing the lending process with their last buyer.
More than one third of those surveyed recommend the same lender for every buyer. Nearly 80 percent recommended a lender during their last sale.
What Lenders Can Do Better to Help Real Estate Professionals and Buyers
Real estate professionals reported that the most important factor they look for when recommending a lender is closing on time (65 percent). Two in five real estate professionals also consider understanding buyers’ needs, not overpromising and committing to pre-approval rates important factors when deciding whether to recommend a lender to a client.