We wanted to understand our clients better, so we commissioned a survey on the challenges of buying and financing a home. Our Homebuyer Sentiments Survey revealed that a whopping 81 percent of respondents believe the American Dream is on life support. Their distrust and frustration towards lenders and the home financing process runs deep. These findings paint a picture of a mortgage industry that fails to meet the needs of homebuyers.
Here are some of our survey’s most notable findings:
We partnered with Atomik Research, an independent creative market research agency, to find out what Americans think about home ownership, financing, and what they’d be willing to do — or give up — to buy a home. Many Americans feel that buying a home and getting a mortgage are increasingly painful, despite how much lenders promote their “disruptive technology.” Home financing accessibility emerged as a major issue: 33 percent of survey respondents said the mortgage process is too stressful to be worth it and 20 percent said they could afford a home, but their finances were too complex for them to believe they could secure a mortgage.
Homebuying and Accessibility: Hate or Trust the Process?
- More than a quarter (26 percent) of respondents don’t trust big banks since the housing crash of 2008.
- 1 in 5 (21 percent) believe the home financing process is completely broken.
- Close to a third (32 percent) say they have no familiarity at all of the available mortgage lending options.
- 72 percent think getting a mortgage should be easier.
- 48 percent believe traditional mortgage lenders will not treat them fairly and 41 percent do not want to interact with a mortgage lending company/banker when buying a new home.
What Americans Would Give Up to Make Home Buying Less Miserable
- 27 percent shared that they’d forgo all streaming services with their favorite shows (Netflix, Hulu, HBO GO, etc.) for 5 years.
- 26 percent said they would give up their favorite vice (booze, smoking, dessert, etc.).
- 15 percent would rather break a bone than go through the home buying process.
- Close to 1 in 10 (9 percent) would shave one year off their lifespan.
- 5 percent would give up their first born.
What Eave Is Doing to Help
We knew that homebuyers dislike and distrust the mortgage process, but we were still pretty surprised to see the final survey results. A huge number of Americans are feeling locked out of home buying, not necessarily because of affordability, but because of the stress and uncertainty around getting a mortgage. Their reasons vary: they don’t want to deal with an overly complicated lending process. They have non-traditional finances (like income from self-employment, equity, etc.). They don’t think it’s worth the stress. Or, they simply don’t believe they will qualify for a mortgage.
Seeing the data reminded us of why we built Eave in the first place: to enable all creditworthy homebuyers to get simple, transparent, and cost effective mortgages that win. That’s why we’re thrilled to be offering our mortgages to those buying homes starting at $32,000.
We’ve worked hard to perfect our system. We use it to help homebuyers with the most complicated finances and tested it in two of the most competitive real estate markets in the country: Colorado and California. With our powerful technology, we’re able to fully underwrite buyers in just 24 hours, giving them more speed and certainty in the home buying process. And we do it with powerful accuracy, even for those who are self-employed, small business owners, or have complex portfolios.
At Eave, we do everything possible to support our clients in making offers that sellers love and are more likely to accept. And our results speak for themselves: In 2018, 90% of our clients won the first home they made an offer on.
We’re proud of what we’ve built, and our Homebuyer Sentiments Survey has us more excited than ever to bring the Eave advantage to all creditworthy homebuyers.
We think it’s time to put certainty, confidence, and joy back into home buying. Don’t you?
Research Methodology: Eave partnered with Atomik Research to run an online survey of 2,002 adults in the United States. The margin of error fell within +/- 2 percentage points with a confidence interval of 95 percent. The fieldwork took place between December 17 and 19, 2018. Atomik Research is an independent creative market research agency.