– The mortgage industry is constantly evolving due to market shifts and changing borrower habits and preferences.
– Borrowers today have different expectations and are more likely to consider only one or two options before selecting a lender.
– Lenders need to adapt their business practices to compete and deliver the experience borrowers prefer.
– Five strategies to deliver a better borrower experience include creating a seamless experience for lower costs and faster closings, using data to drive more referrals, balancing technology and human connections in every customer interaction, considering borrowers’ age and mortgage experience to deliver tailored experiences, and becoming a trusted partner and helping borrowers understand the options available to them.
– Borrowers value having a human connection throughout the home buying process and prefer a blend of traditional methods and digital tools.
– Older borrowers are more likely to prefer online tools with traditional methods supporting the process, while younger borrowers still value meeting in person.
– Flexible loan options are important to borrowers, especially Millennials.
– Lenders should invest in building strong relationships with borrowers and provide educational resources and support to help them understand their options and achieve homeownership.
The mortgage industry continues to evolve, especially as the market shifts. In addition to limited inventory, rising rates and affordability constraints, mortgage companies have been challenged to keep up with changing borrower habits and preferences. Today’s borrowers have different expectations compared to borrowers from even just a few years ago, and to compete, lenders need to adapt their business practices. As shared in our “What Borrowers Want” eBook, a majority of borrowers only consider one to two options before selecting a lender. So, time — and experience — is of the essence in growing your business. Read on to learn the top five strategies that can help you deliver the experience your borrowers prefer.
5. Create a seamless experience for lower costs and faster closings
Two-thirds of recent borrowers cited saving money as one of their top three concerns for financing a mortgage. A meaningful way for lenders to lower costs and pass savings along to their borrowers is to reduce unnecessary steps in their workflows and speed up processes for both a faster approval and a faster closing. By building an interconnected, end-to-end workflow, you’ll be able to keep your team in a single system throughout the entire mortgage journey and, ultimately, deliver a better experience for your borrowers. Learn how lenders are streamlining their workflows and the results they are seeing in the What Borrowers Want video series latest episode: Unlock the power of your partner network for a seamless borrower experience.
4. Use data to drive more referrals
Our data also found that the primary way borrowers are finding their lender is through referrals. Nearly one in four less-experienced homebuyers (those who have only taken out one to two mortgages) said they rely on a referral from their Realtor. Additionally, 32% found their most recent lender based on a referral from a family member or friend — this is especially true for Gen Z and Millennials. By consistently delivering exceptional experiences, you’ll build a reputation that will help you maintain strong relationships with your Realtor partners and past borrowers. Curious how you could better leverage your data? Find out in the What Borrowers Want episode: Leverage data for repeat and referral success.
3. Balance technology and human connections in every customer interaction
Fewer than one in 10 borrowers want a fully digital experience. Borrowers enjoy the speed and ease-of-use that digital tools provide; however, they also value having a human connection throughout the home buying process. In fact, 26% of borrowers said they want an equal blend of traditional methods and digital tools during their next mortgage experience. It’s important that you take the time to learn your borrowers’ preferences and understand where in the process they want the convenience of digital tools and where they want to speak with a person. We explore striking the right balance between leveraging technology and delivering a human touch in the What Borrowers Want episode: Where technology matters most in the customer experience.
2. Consider your borrowers’ age and mortgage experience to deliver tailored experiences
More experienced homebuyers (those who have taken out five or more mortgages) are more likely to prefer to interact with their lender through online tools with traditional methods supporting the process. Furthermore, 51% of older borrowers (Gen X and up) like that online applications eliminated the need to meet in person; however, only 31% of Gen Z and Millennials feel the same. This may surprise some lenders who believe that older generations might not gravitate towards digital tools. Instead of assuming what kind of experience different generations of borrowers prefer, take the time to dig into the research that spells out the processes each segment likes best. Discover how you can deliver an exceptional experience for every borrower, watch the What Borrowers Want episode: Get to know your borrowers when every loan matters.
1. Become a trusted partner and help borrowers understand the options available to them
More than half of current borrowers cited flexible loan options among their most important considerations when selecting a lender. Flexibility is especially important to Millennials, with 85% of them citing flexible down payment or flexible loan options as a top priority. Now is the time to invest in building strong relationships with borrowers. By providing educational resources and support, you can help them understand the various programs they may qualify for and successfully chart out their path to homeownership.
The bottom line: make sure you are aware of current borrower preferences to win borrowers this year and beyond. Download our full What Borrowers Want eBook today.
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