The Mortgage Process Befuddles Many, Creating an Opportunity for Lenders
A survey from Fannie Mae’s Economic & Strategic Research (ESR) Group found that lenders are consumers’ most influential source of information on getting a mortgage.
According to Dr. Mark Palim, Fannie Mae’s vice president of applied economic and housing research, this is an open door for lenders to play an advisory role in the marketplace. “There’s a real opportunity,” he says, “for lenders to expand their business by improving consumers’ understanding of what it takes to qualify for a mortgage.”
“The body of ESR’s work on consumer understanding of the process of buying a home really highlights that consumers are putting off mortgage considerations until much too late in the process,” observes Dr. Palim. Lenders and the overall mortgage finance community need to “educate consumers to see the value in thinking about the mortgage as early as they are thinking about whether they should rent or buy.”