Homebuyers are looking for a faster and more streamlined mortgage application process, but they still want human interaction in the lending process, according to a recent survey by mortgage automation provider Ellie Mae.
Ellie Mae’s 2017 Borrower Insights Survey found 57% percent of homeowners applied for and completed their latest mortgage completely in person, while 28% applied for their most recent mortgage using a combination of online and in-person interaction. Another 11% of homeowners applied for their latest mortgage completely online with no in-person interaction, according to the survey.
Both homeowners and renters were surveyed. Findings were announced March 8 at the Ellie Mae Experience Conference in Las Vegas.
“There’s no question that technology is playing a larger role in the home buying experience,” Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae, said in a news release about the survey. “As we expected, many homeowners are seeking a faster and more streamlined experience. And it’s not just a millennial phenomenon; it’s homebuyers of all ages and both genders.
“But what’s even more telling is that homeowners still want a personal interaction with their lender,” he added in the release. “They want someone who can answer important questions, and make them feel confident that everything will be handled correctly and on time. While 27% of millennials identified the speed of the process as the top area to improve their experience, 23% cited more face-to-face interaction as the second-greatest opportunity for improvement.”
Approximately 40% of the homeowners surveyed indicated they would like a faster process with fewer delays, and 20% said they would prefer a shorter, easier to understand application process. About 11% asked for more communication with their lender throughout the process, according to the release.
About 30% of millennials indicated they began their mortgage application online and finished it with an in-person interaction with their lender, while 28% percent of Generation X and 20% of Baby Boomer borrowers used this online and in-person approach, the release stated.
The survey found referrals remain the predominant method consumers use to select a mortgage lender. Sixty-one percent of respondents chose their last lender based on a referral by a friend or family member, bank, real estate agent or financial adviser. Online search was used by 18% of the survey respondents, and 25% of millennials said they selected their mortgage lender based on an online search, according to the release.
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