Borrowers Most Frustrated By Closing Difficulties

Lenders looking for happy, loyal customers can benefit from streamlining and digitizing their closings, the part of borrowing that frustrates buyers the most.

In a new survey from Snapdocs, 60% of homebuyers said they experience frustration during the mortgage process, especially during closing, which can impact lenders’ reputations and profits later.

“Borrowers don’t remember everything about the mortgage process, but the closing is our opportunity to leave a lasting impression,” Stephanie Zinsmeister, EVP of Operations for AnnieMac Home Mortgage, commented.

Document errors, lengthy in-person appointments, and unexpected caretaking and travel costs were the most commonly cited factors causing borrower unhappiness.

One in four respondents said they had errors in their closing documents, with many requiring another round of signatures to move forward.

Of those who took off work to attend their closing appointment, 40% said they lost wages, and 60% had to leave for more than three hours.

Borrowers who closed digitally, or were able to just preview the documents digitally, reported more satisfaction with their buying experience.

“We’re committed to providing a positive, celebratory experience for borrowers, and we’re able to accomplish that by offering them digital closings,” Zinsmeister said.

While rates are top of mind for homebuyers right now, many Americans choose their lender based on other factors, such as personalized service and helpfulness.

“To effectively compete in the future, lenders need to set themselves apart by focusing on addressing customers’ unique challenges and meeting their needs rather than selling a product,” said Craig Martin, executive managing director and global head of wealth and lending intelligence at J.D. Power.