Borrower Survey Finds 60% of Homebuyers Experience Frustration During the Mortgage Process

Snapdocs survey of over 2,000 U.S. homebuyers reveals the mortgage process was confusing & inaccurate, inconvenient, or more costly than expected—with the majority of issues occurring during the closing

According to a new survey conducted by Snapdocs, the mortgage industry’s leading digital closing provider, 60% of homebuyers experience frustration during the mortgage process. The key factors borrowers identified as negatively impacting their experience occurred during the closing, including document errors, lengthy in-person appointments, and unexpected caretaking and travel costs. Borrowers who were given the option to close digitally, or even just preview the documents digitally, reported higher satisfaction with their mortgage process.

Key Findings: Borrower Pain Points During the Mortgage Closing Process

  • 1 in 4 borrowers had errors in their closing documents, with a significant portion having to re-sign their documents due to these mistakes. Borrowers who closed in person were 25% more likely to report that needing to re-sign documents negatively affected their overall homebuying experience, compared to those who closed digitally.
  • 60% of borrowers took more than 3 hours off work to attend their closing appointment in person, and nearly 40% lost wages during that time.
  • 35% of borrowers incurred additional non-mortgage expenses, such as caretaking and travel, in order to attend their in-person closing appointment. Millennial-age and first-time homebuyers were twice as likely to incur these costs than any other demographic.

The Role of Technology in Improving Borrower Experience

The survey also uncovered that borrowers who closed digitally experienced a smoother, more efficient closing process, as technology prevented errors and reduced signing appointment time. In fact, 93% of borrowers said the ability to digitally preview closing documents before their appointment gave them more confidence in the homebuying process. While most borrowers took over three hours off work to attend their closing, many who opted for a digital closing took less than an hour. These survey results mirror what lenders are prioritizing—streamlining the mortgage process and enhancing the borrower experience through digital closings.

“Borrowers don’t remember everything about the mortgage process, but the closing is our opportunity to leave a lasting impression,” said Stephanie Zinsmeister, EVP of Operations for AnnieMac Home Mortgage. “We’re committed to providing a positive, celebratory experience for borrowers, and we’re able to accomplish that by offering them digital closings.”

Additionally, the survey found that fully digital closings, or Remote Online Notarization (RON) transactions, offer a valuable opportunity for lenders to increase borrower satisfaction. Respondents who completed a RON closing reported higher levels of satisfaction—with 72% expressing they were "very satisfied," compared to 59% for in-person closings.

Nearly 40% of respondents who completed a RON closing stated that a lender's ability to offer a RON closing influenced their decision in selecting a lender. After interest rates, the ability to provide a RON closing was the second most important factor in lender selection for these borrowers, suggesting that offering fully digital closings is likely to drive more referrals and repeat business.

“The homebuying process should be an exciting moment for borrowers, especially during the closing,” said Michael Sachdev, CEO of Snapdocs. “But this survey shows that far too many borrowers face unnecessary frustration during this critical final step of the mortgage process. At Snapdocs, we're dedicated to removing those barriers by giving lenders the tools they need to deliver fast, secure, and flawless digital closings to every party involved.”

The full report is available at Snapdocs.com.

About the Borrower Sentiment Survey

The survey was conducted through a third-party research platform and included responses from 2,042 individuals who financed a home purchase with a mortgage in the U.S. between January 2022 and June 2024. To ensure a representative sample of the U.S. market, responses were collected based on the population of homeowner demographics from the National Association of Realtors' 2023 Profile of Home Buyers and Sellers.

About Snapdocs

Snapdocs is the leading digital closing provider, connecting the people, processes, and technologies that power a mortgage closing. Our platform automates every interaction between lenders and title companies from pre-closing through the sale of the loan. With our patented AI technology, hands-on customer service, and extensive partner network, all mortgage participants enjoy accurate, smooth, and secure closings. Our approach gives customers a competitive advantage by saving them time and money. Snapdocs makes mortgage a snap. For more information, please visit www.snapdocs.com.

Snapdocs CEO says, "Far too many borrowers face unnecessary frustration during the mortgage closing. We're dedicated to removing those barriers by giving lenders the tools they need to deliver fast, secure, and flawless digital closings to every party."

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