Ten years after the housing crisis half of homeowners believe the housing market in their region and nationwide has improved but most want the mortgage application process to get better too
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Ten years after the housing crisis half of homeowners believe the housing market in their region and nationwide has improved but most want the mortgage application process to get better too.
The rise in home values has boosted sentiment in the market with 91% of homeowners and 83% of renters telling a survey by mortgage outsourcing firm Digital Risk that owning a home is a good investment.
The majority (87%) of owners said their home appraisal value has either increased or held, a fifth of those by at least 20%. Just 12% said values had dropped.
"It's important to remember how far we've come in a decade,” said Jeff Taylor, Co-Founder and Managing Director of Digital Risk and a board member of the Mortgage Bankers Association. “The fact that the American dream of owning a home is once again considered a smart investment suggests the housing market has years of strong performance ahead of it - provided that more borrowers clearly understand the criteria and 'pathway' to obtaining a mortgage."
Barriers to homeownership still exist, the survey shows, led by affording a downpayment (40% of renters said so). Almost a third of renters said that lower credit requirements would lead them to buying a home.
Although 75% of all respondents (owners and renters) say they support efforts to make the mortgage process safer and more consumer-friendly, just 22% of owners and 13% of renters said that the mortgage application process had got better.
More than half of respondents are not sure if regulations have made obtaining a mortgage easier and just 19% were sure that they had.
On using technology, the Digital Risk survey found that two thirds of owners and 59% of renters are willing to complete applications online but half would want to speak to a representative in person during the process.
Paperless transactions are also not favored, with only 2% of respondents saying they would be more likely to choose a mortgage lender that offered paperless options.
"Today's challenge for lenders is to harness technology to make the process safer, more convenient and faster, without losing sight of the need for a human touch," explained Taylor. "While they may trust smartphone apps to find a good restaurant, get directions or even hunt for a home, many borrowers still want contact with an experienced person to help guide them through the mortgage process."
The rise in home values has boosted sentiment in the market with 91% of homeowners and 83% of renters telling a survey by mortgage outsourcing firm Digital Risk that owning a home is a good investment.
The majority (87%) of owners said their home appraisal value has either increased or held, a fifth of those by at least 20%. Just 12% said values had dropped.
"It's important to remember how far we've come in a decade,” said Jeff Taylor, Co-Founder and Managing Director of Digital Risk and a board member of the Mortgage Bankers Association. “The fact that the American dream of owning a home is once again considered a smart investment suggests the housing market has years of strong performance ahead of it - provided that more borrowers clearly understand the criteria and 'pathway' to obtaining a mortgage."
Barriers to homeownership still exist, the survey shows, led by affording a downpayment (40% of renters said so). Almost a third of renters said that lower credit requirements would lead them to buying a home.
Although 75% of all respondents (owners and renters) say they support efforts to make the mortgage process safer and more consumer-friendly, just 22% of owners and 13% of renters said that the mortgage application process had got better.
More than half of respondents are not sure if regulations have made obtaining a mortgage easier and just 19% were sure that they had.
On using technology, the Digital Risk survey found that two thirds of owners and 59% of renters are willing to complete applications online but half would want to speak to a representative in person during the process.
Paperless transactions are also not favored, with only 2% of respondents saying they would be more likely to choose a mortgage lender that offered paperless options.
"Today's challenge for lenders is to harness technology to make the process safer, more convenient and faster, without losing sight of the need for a human touch," explained Taylor. "While they may trust smartphone apps to find a good restaurant, get directions or even hunt for a home, many borrowers still want contact with an experienced person to help guide them through the mortgage process."
