A survey by Ellie Mae found that nearly two-thirds of Americans expect to be able to apply for a mortgage and complete the application online.
The 2018 Ellie Mae Borrower Insights Survey polled more than 3,000 homeowners and renters. Ellie Mae found that borrowers used both high-tech and human-touch when applying for their last mortgage.
“The trend toward online is a great opportunity for mortgage lenders,” Ellie Mae Executive Vice President Joe Tyrrell said in a release. “As lenders embrace a true digital mortgage, borrowers will get the benefit of both a high-tech process to make things go faster, and a human-touch experience, providing transparency and building their confidence.”
“A true digital mortgage that encompasses all aspects of the process enables lenders to dedicate their resources towards building valuable relationships with borrowers and guiding them through the process, instead of spending time clicking buttons or validating data,” Tyrrell added. “High-tech and human-touch are equally important.”
The survey found that 16 percent of homeowners applied for their loan completely online, while 45 percent of homeowners completed the process entirely in-person. Thirty-seven percent used both an online application and in-person interaction.
According to Ellie Mae, nearly one-third of all homeowners surveyed (31 percent) said they conducted mortgage research online before they applied. Slightly more than 20 percent found their lender through an online search. Following the application, 19 percent of homeowners used an online resource for loan origination and eight percent used one after closing the loan.
Millennials used an online application process for all or some of their last mortgage, as compared with 55 percent of Gen-Xers and 43 percent of baby boomers. Nine out of 10 homeowners who used an online application felt it improved their experience.