RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

First-Time Homebuyers Perplexed by Lending Process

December 12, 2014 2:18 am

First-time homebuyers report challenges with understanding the mortgage process and the options that are available to them, according to the J.D. Power 2014 U.S. Primary Mortgage Origination Satisfaction Study(SM).

“From describing what will happen during the process in terms a customer can understand to explaining the benefits of different options, loan representatives set the tone of the experience,” says Craig Martin, director of mortgage practice at J.D. Power. “A potential challenge with first-time homebuyers is that they may be afraid to appear uninformed, so they won’t admit when they are confused or don’t understand something. For a lender to truly stand out, their staff must foster relationships that promote open and honest communication.”

The study reveals that first-time homebuyers want a transparent mortgage process; 43 percent of all first-time homebuyers indicate they do not completely understand the process. A lack of experience and uncertainty about the process may influence how they first inquire about a mortgage; 48 percent chose to meet with local lenders in person for advice tailored to their specific situations.

The study also found:
  • The majority (54 percent) of first-time homebuyers indicate they don’t fully understand the different loan options available to them. Just 41 percent reported thorough explanations of the types of loans, terms, special programs, fees and options to reduce their down payments.
  • Consistent communication is another important factor in a positive borrowing experience. Customer satisfaction falls significantly when loan representatives fail to call customers back as promised.
  • The closing experience is often confusing for first-time homebuyers. Forty-four percent indicate that the closing agent did not completely explain all of the closing documents.
While many mortgage customers obtain information and updates online and by using mobile devices, the study shows that the loan representative is still a key part of the equation. Interestingly, some of the most important things lenders can do to deliver a great experience remain heavily reliant on human interaction.

Source: J.D. Power

Published with permission from RISMedia.


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Real Estate Transaction Roles Explained

December 12, 2014 2:18 am

Real estate transactions are complex and, at times, confusing. Clients can better understand this course of action by knowing who they’re working with and what role those individuals play. Whether seeking to buy or sell a residential home, expect several parties to be involved in the process. Brokers, agents and attorneys are among the most common:

Depending on whichever unique business model the firm utilizes, brokers typically have the same qualifications as an agent, but their roles are to primarily supervise other agents. Commissions from sales are often paid to the brokerage, then allocated to the agent involved in the transaction.

Agents
are at the forefront of the buying and selling process. Real estate agents work directly with clients to either secure a home at their desired price point and in a coveted location, or to generate buyer interest and ultimately find a new owner for your home. An agent can represent either a buyer or a seller, and both agents frequently communicate.

Once a transaction between a buyer and a seller is under contract, a real estate attorney facilitates a smooth close. The responsibilities of an attorney vary, but some common duties include explanation of the terms of the mortgage, review of purchase agreements and investigation of the backgrounds of properties.

Source: Zillow

Published with permission from RISMedia.


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