A shortage in inventory housing plus the rise in home prices and interest rates continue to pressure lenders. Almost every lender plans on beefing up digital mortgage systems to give consumers a more hands-on approach to the process.
Total Real Estate Needs, a real estate company, knows that finding the perfect home doesn’t come easy. As more lenders adopt technologies when it comes to their mortgage, people may find it easier to look for a home.
More Consumers Go Online for Mortgage Matters
You can expect the mortgage industry to lean toward heavy tech development. J. D. Power’s study revealed that purchase and refinance customers frequently went online when submitting a mortgage application.
From only 28 percent in 2016, 43 percent of mortgage consumers applied digitally in 2017. So even if the mortgage industry seems to be lagging behind in terms of technology, the industry may see the tables turning this year.
In a different study, J.D. Power also narrowed down the percentage of generations using digital banking. The results showed that 49 percent of millennials use digital banking, along with 31 percent of Gen Xers, and 16 percent of baby boomers.
Changes Brought by Digital Mortgage
Businesses plan to create a more transparent and efficient mortgage experience as consumer expectation for a new wave of technology grows.
This will continue as lenders put greater emphasis on offering self-service options for borrowers. PricewaterhouseCoopers (PwC) reports three trends they observed among consumers:
- Digital adoption continually grows
- Digital undergoes redefinition
- New opportunities present themselves for lenders to offer extra value to borrowers
Amid the rise of digital mortgage technology, businesses need to remember that everyone’s needs may not entirely be the same. A company need not adopt a digital mortgage roadmap if it doesn’t benefit the consumers they serve today and in the future. Leveraging mortgage technology is about finding the balance that benefits the business and the consumer.