MAITLAND, Fla.–The homebuying process still troubles many borrowers of all demographics due to the complexity associated with the mortgage application process, according to a new survey.
That survey, conducted by Digital Risk of 1,002 Americans between the ages of 18 and 54, found that first-time homebuyers are struggling with the mortgage loan process, with 100% of respondents saying the mortgage process was not “smooth and on time.”
Among the findings:
- 53% of those surveyed blamed an increasingly rigorous regulatory environment as a top concern due to longer closing times
- 83% of respondents are “as confident” or “more confident” in their ability to make mortgage payments compared to last year; meanwhile, 43% reported having little or no confidence in the economy
- 72% of 24- to 44-year-olds respondents are more likely to use smartphones for banking and transactions such as payments, while 55% conduct mobile banking with their devices.
“Technology solutions that stand to make the process more efficient only can gain momentum when buyers are reassured that they are not sacrificing security for speed,” said Digital Risk Co-Founder and Managing Partner Jeff Taylor. “This data reinforces the fact that the younger prospective homebuyers are much more open to managing these transactions via mobile banking. The demographics of home ownership are changing, and technology must adapt to suit the needs of these emerging buyers."
Millennials are more comfortable than older generations with mobile mortgage technology, but Digital Risk said that it found a steep learning curve still exists when it comes to getting used to an automated process.
“It’s a matter of trust,” said Taylor. “Consumers are more comfortable with technology when it is associated with a lender they already use. This reinforces the role of reputation and risk management as critical to the success of financial institutions. In the mortgage space in particular, companies with a strong track record stand to benefit from the rise of mobile tools.”