As more mortgage lenders offer digital options for increasingly tech-savvy customers, getting the experience right is gaining importance.
Among the key issues that borrowers are demanding are a streamlined process and good communication with lenders according to a report by US-based mortgage software firm Ellie Mae.
Its Borrower Insights Survey shows that frequent communication is vital especially for younger borrowers who may be making their first mortgage application and may need guidance and reassurance throughout the origination process.
“With borrowers using an average of more than five different methods of communication throughout the origination process, it is up to the lenders to offer a customized approach for each individual borrower to best suit their unique needs. That means employing every channel and being able to pivot from one to another as the borrower needs shift,” said Joe Tyrrell, executive vice president of technology and corporate strategy for Ellie Mae.
Using tech to build relationships
The report also reveals that 50% of consumers choose their mortgage lender based on whether they provide an online application or portal; and 47% said the ability to upload documents online was a factor in their decision.
And while about one half that have used an online mortgage application finished in one sitting, about one quarter started the application online but did not finish it online.
“As more Millennials enter the housing market, it will be imperative for lenders to prioritize the use of all available technologies, digital tools and communication channels to foster strong borrower relationships throughout each step of the loan lifecycle – from the moment they are interested, all the way through to closing,” added Tyrell.
More market update: