Homebuyers are still stressed about mortgages

Nearly three-quarters of homeowners rated their last homebuying experience as either “very good” or “excellent,” an increase of nearly 10 percent since 2014.

According to a recent survey from the TD Bank Mortgage Service, homebuyers are having a better buying experience, thanks to finding a good Realtor®, getting approved for a mortgage and finding the right lender.

Forty-two percent of respondents believe the housing market will improve over the next six months. Fifty-six percent feel that now is a good time to purchase a home. Twenty percent said they were “extremely likely” to purchase a new home in the next 12 months, millennials more so than other age groups.

Despite the increases in consumer’s satisfaction with the homebuying process, there are still substantial stressors in the process.

Thirty-two percent said their homebuying experience was “very to extremely stressful,” thanks mostly to mortgage stressors. Homebuyers said they would like to be able to find more information on mortgages online, and that they would attend home financing seminars or workshops. Millennials especially are eager for more information, especially online.

Sixty-two percent of homebuyers had nearly $2,000 in unexpected costs during the mortgage process, while nearly 50 percent of millennials said they had almost $5,000 in unexpected costs.

More than 50 percent said they put down less than 20 percent when buying their first home, and 32 percent financed their house with a mortgage affordability program, including more than half of millennials.

Nearly 25 percent of respondents share a mortgage with someone who is not their spouse, including 42 percent of millennials. More than a quarter of homebuyers bought their home with a significant other before they wed.

The study included 1,305 respondents who took out a home mortgage during the last 10 years.