The 2026 ServiceLink State of Homebuying Report taps into the mindset of homebuyers, revealing financial pressures, emotional drivers and digital expectations - plus, loan officer insights
PITTSBURGH, April 14, 2026 /PRNewswire/ -- The 2026 ServiceLink State of Homebuying Report, released today, unveils a deep look into the psychology of today's homebuyers, uncovering their biggest stressors, time pressures, economic uncertainties and ever-growing reliance on digital tools. While buyers are motivated by both practical needs and powerful psychological triggers – from the desire for financial security to the comfort of feeling in control during this high-stakes process – report findings show that they ultimately want the homebuying experience to be simple, affordable, transparent and stable.
The 2026 ServiceLink State of Homebuying Report taps into the mindset of homebuyers, revealing financial pressures, emotional drivers and digital expectations – plus, loan officer insights.
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Today’s buyers found themselves crunching numbers and making compromises.
Homeowners want to give their pets room to zoom.
These top technologies would influence respondents’ decision to work with a specific lender.
Today’s buyers say they want clarity, transparency and clearer communication throughout the homebuying process.
Key insights and takeaways from the report examining the characteristics and values of the modern borrower.
Now in its sixth year, the report introduces a fresh, comprehensive look at the homebuying process from inside the mind of today's buyers, specifically those who have purchased a home in the last two years. To enrich the depth of the 2026 report, ServiceLink also surveyed more than 500 loan officers to get their unique viewpoints, bringing valuable context to the challenges today's borrowers encounter and highlighting areas where knowledge gaps persist.
"Between the paperwork, negotiations, securing a good rate and figuring out what the price of homeownership will actually cost them, today's homebuyers are telling us that they are overwhelmed," said Dave Steinmetz, president, origination services. "Many are being forced to compromise, stretching beyond their budgets yet still not getting everything they want in a home. Instead, they are craving ease, value, transparency and long-term reliability. Recognizing these needs can help lenders make meaningful shifts to streamline their processes to get them a competitive edge, meeting today's buyers where they are."
Key findings of the report include:
Across the key findings, a consistent picture emerges: Today's buyers are stressed, time-strapped, inventive and digitally fluent, yet they're also driven by a strong desire for simplicity, affordability, clear communication and long-term stability. These traits shape how they budget, what they compromise on, how they use technology and what they expect from lenders throughout the process.
Stressed and craving simplicity and stability
Today's buyers were clear; they're stressed out by the process. The most stressful part of the process is the home price offer and negotiation (19%), followed by understanding all of the paperwork (15%), the closing process (12%) and securing a good mortgage rate (12%) - all pointing to opportunities for lenders to provide resources and education along the way.
While most respondents have some awareness of the fees involved in the homebuying process, loan officers feel that the knowledge gaps are actually greater than today's homebuyers are letting on. The breakdown: 67% of homebuyers said they fully understand taxes, while only 48% of loan officers believe their borrowers fully understand their taxes. Similarly, 60% of homebuyers said they fully understand realtor fees while only 37% of loan officers agree.
To simplify the process, today's buyers want to make the closing as easy as possible. For 39% of respondents, they would prefer to close on a future home purchase at their home or another location of their choosing, while 29% would prefer to close at a bank branch with a banker and 22% would like a fully virtual closing.
When equity grows, so does homeowner stability. Although report respondents have just recently purchased their homes, within the last two years, they still have meaningful equity built up. 38% said they already built up more than $100,000 in equity in their home and 36% said they plan to take out a home equity loan or home equity line of credit (HELOC) this year. The main reason: to have extra money to make home improvements (49%).
Time-strapped buyers have digital expectations
Today's buyers see the benefits of technology throughout the mortgage process. 57% of respondents said they like the time savings added technology provides while 52% said they like the convenience/ease of use and 43% said they like the flexibility it offers to make progress on their own schedule.
The top technologies that would influence respondents' decision to work with a specific lender: 88% say they would be swayed by the opportunity to eSign some or all of their closing documents, 87% would choose a specific lender if they offered them the option to use their personal phone or tablet to self-schedule an appraisal or closing appointment at the exact date and time they desired and 82% would choose a lender that offered the opportunity to hold their closing virtually.
39% of respondents said they would like to see more transparency into the steps and fees throughout the homebuying process.
33% of loan officers think the mortgage industry should focus its efforts on better communication from the lender to their borrower.
Social media may be booming, but borrowers still seek direct, one-on-one human guidance. Who they are turning to for advice: 43% of respondents said real estate agents, 35% said family/friends and 29% said lender/loan officer. Social media and AI Chatbots came in last at 21% each. For those who turned to social media, YouTube (72%), Instagram (60%) and Facebook (58%) were the most popular channels.
Going beyond their financial comfort zone: The need for affordability
More than seven in 10 respondents said they went over budget when purchasing a home in the last two years. Of that, 22% of respondents went between $50,000 and $79,999 above their budget and 10% spent $80,000 or more than they initially budgeted.
29% of respondents said they put down more of a down payment than they wanted, while another 29% of respondents also said they were forced to take on a higher interest rate than they wanted. 28% of respondents also said they took on more of a mortgage than they wanted to.
Given the financial strain of buying a home, 50% of Gen Z respondents and 44% of millennial respondents havebeen at risk of missing at least one mortgage payment over the last two years, with 14% of Gen Z respondents and 15% of millennial respondents saying they were at risk of missing a payment between six and 10 times during that timeframe.
Loan officers said this willingness to overextend is a sign of the times. In fact, 69% said borrowers taking on more of a mortgage than they can realistically afford is their number one concern in this current market. 38% of loan officers also said home affordability, specifically qualifying borrowers for a loan, keeps them up at night.
Cash-strapped buyers get inventive, make compromises – except with their pets
Despite spending more, buyers still were forced to make compromises with their home purchase. 21% of respondents said they bought a home with a smaller yard than desired and another 21% of respondents said they bought a home with fewer bedrooms than desired.
While 77% of respondents used cash or savings to help fund their downpayment, others are getting creative to come up with the funds. 27% said they pulled funds from their 401(k), 19% used an inheritance or gift, 14% borrowed from family and friends, 13% pooled money with family to buy a home together and 8% pooled money with friends to buy a home together.
When it came to their pets, this was one area homeowners weren't willing to compromise. About nine out of 10 homeowners surveyed said they considered their pets' needs when buying a house, with 54% of pet owners buying a home with a fenced-in yard, 38% buying a home in a walkable community and 37% buying a bigger house – all for their pets.
Methodology The 2026 ServiceLink State of Homebuying Report reveals fresh, timely insights drawn from two robust surveys of key industry voices: consumers and loan officers. The consumer survey, conducted November 17 - December 8, 2025, captures the perspectives of 1,554 U.S. residents (18+) who purchased a home within the past two years. Complementing this, the loan officer survey – fielded November 27 - December 8, 2025 – reflects input from 507 loan officers with at least three years' experience. Together, these surveys, conducted in partnership with Sago, provide a focused look at the psychology of today's homebuyers.
About ServiceLink ServiceLink is the nation's premier provider of tech-enabled mortgage services. Through our award-winning, best-in-class, proprietary technology and decades of trusted experience, ServiceLink is revolutionizing the industry. Our dedicated teams set the standard in mortgage technology while providing end-to-end origination and default management services faster, with more clarity and precision. Our services improve efficiency and transparency throughout the entire mortgage process, truly Linking What Matters™. ServiceLink offers a full product suite of services, including valuation, title and closing and flood services to mortgage originators; and title and closing, field services, valuation, auction, REO asset management and reporting and support service to mortgage servicers. For more information about ServiceLink, visit www.servicelink.com.
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