Success In The Mortgage Process: Are Borrowers Feeling Confident?

Sep 5, 2023

5-minute read

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According to the National Survey of Mortgage Originations (NSMO), 59% of borrowers said they were somewhat to not at all familiarized with the mortgage process. Buying a home is one of the largest purchases a person will ever make, which is why it’s important to feel confident when embarking on every step of this journey.

We took a close look at borrowers who were familiar with the mortgage process and those who weren’t, so we could identify some key differences between the two groups. We analyzed the NSMO to compare the home buying resources that borrowers used to educate themselves when taking out a mortgage for their primary residence. In addition, we looked at what was important to these borrowers when choosing a lender and the steps they took to understand more about their individual journey before starting the mortgage process.

59% Of Borrowers Said They Were Somewhat To Not At All Familiarized With The Mortgage Process

Many steps are involved in getting a mortgage and eventually buying a house. These steps include everything from having a good credit score to getting mortgage preapproval to knowing how much money is needed for a down payment and closing costs. Fully understanding every part of this process can be hard, especially if you’re a first-time home buyer.

Infographic breaking down the levels of familiarity of parts of the mortgage process into percentages.

According to the NSMO, 19% of respondents said they’re not at all familiar with the mortgage process. At the same time, 40% felt very familiar or somewhat familiar with the process.

The data also shows that 75% of borrowers were very familiar with their credit history or credit score as it pertains to the mortgage process. Perhaps this familiarity stems from credit scores typically being discussed more often since they’re linked not only to the mortgage loan process but they’re also important when applying for credit cards and other loans.

Understanding basic concepts like down payments, mortgage approval, closing costs and interest rates can give potential borrowers a better idea of where they stand financially – so they can be approved for a mortgage and also afford one. Such knowle