Mortgage lenders: Your digital tools may make or break you

Homebuyers choose lenders based on digital offerings, survey shows

Digital mortgage solutions are a major priority for today’s homebuyers. In fact, according to a new survey, half of all homebuyers choose their mortgage lender based on their digital offerings.

All about online

According to the 2019 Borrower Insights Survey from mortgage platform provider Ellie Mae, a large chunk of recent homebuyers picked their mortgage lender based on their digital offerings. A full 50 percent said they based their decision on “whether they offered an online application or portal.” Another 47 percent said access to an online portal was a factor in their choice of lender.

Buyers say these digital tools offer a faster closing time, a simpler application and easier access to information.

According to Joe Tyrell, executive vice president of technology and corporate strategy at Ellie Mae, online tools are even more important as Millennial homebuyers continue to enter the market.

“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,” Tyrell said.

Quicker communication

But applications and portals aren’t the only things today’s buyers want. The survey also revealed that online communication tools are a big priority for modern buyers. This is especially for younger ones who might have more questions as they go about the mortgage process.

Ellie Mae’s survey found that communication across multiple channels has increased 20 percent in the last year.

“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,” Tyrell said. “That means employing every channel and being able to pivot from one to another as the borrower needs shift.”

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Do you want to find the online mortgage lender that’s best for your needs? Then shop around and see your mortgage offers today.