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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 36 July 2023 3 Ways to Elevate the Customer Experience N ow let's look at what homebuyers want and need. Overall, respondents to the SO- HBR survey shared a desire for a faster, easier, more transparent mortgage process. Lenders looking to win consumers over are incorporat- ing a variety of technology tools and self-serve options to satisfy this need. They recognize that by providing a seamless, tech-enabled home- buying process, they improve their appeal. Still, while technology is a huge factor, it's not the only factor. Homebuying decision-mak- ers also expressed that they'd like more educa- tion from their lenders and real estate agents. If they're going to buy a home or take out a home equity loan in today's challenging market, they want to make sure they're doing it right. 1. Infusing technology: The relentless pressure on lenders to speed up processes, get borrowers to the closing table faster, and reduce costs can be eased simply through technology. Advances in self-serve apps and other digital tools—online mortgage applica- tions, electronic document signing, remote closings, and digital self-scheduling capa- bilities, to name a few—make it quick and convenient for borrowers to progress through key milestones in their mortgage process. What are borrowers looking for in their home purchase process? Tech-enabled expe- riences. Here are the top benefits of technol- ogy in the home purchase process, as told by SOHBR respondents: » Convenience and ease of use (63%) » Time savings (59%) » Flexibility to make progress on their own schedule (51%) » Transparency into the process (49%) » Cost savings (40%) As lender momentum toward incorpo- rating digital solutions into their processes continues to accelerate, homebuyers appear to be delighted. SOHBR findings reflect their quick adoption of these digital options: » 53% of respondents said they had applied for a mortgage online » 48% eSigned their application or closing documents » 25% conducted an appraisal remotely via a virtual platform » 25% scheduled an appraisal or closing digitally 2. Improving transparency: Visibility = peace of mind. When asked what they would change about their mortgage experience, 48% of SOHBR respondents said they want more transparency into the steps of the process as well as the fees involved. Lenders that leverage technology in consumer-facing origination platforms can empower borrow- ers to track milestones and overall progress, communicate important information via push notifications, and, through digital edu- cation tools, explain what they should expect. 3. Providing relevant education: Buying a home can be complex and anxiety-inducing even when conditions are just right. Less con- ducive conditions, such as high interest rates and home prices, put even greater pressure on potential buyers, who consequently have a larger stake in any deal they make. Buyer's fatigue is real: almost half (49%) of SOHBR respondents said they had considered buying a new home in the past 12 months but ultimately decided against it. Compare this with just 24% who said the same in the 2022 report. These consumers are looking for relief— support to make the homebuying process easier. This presents one more opportunity for lenders to shine. Giving homebuyers easy access to information and education empow- ers them with the knowledge they need to make sound decisions whether they are buy- ing their first, second, third, or subsequent home. In fact, 43% of SOHBR respondents said they would like more education from their lender or real estate agent. What type of education is most helpful? Anything that helps answer frequently asked questions—for example: » How much house can I afford? » How do I calculate my monthly payments? » Which type of loan is best for me? » How does the homebuying process work? » What are my options for buying a home? This final question is particularly relevant right now, as more and more homebuyers are considering auction as a source of their next home: 40% of SOHBR respondents said they would consider buying at auction but haven't done so yet, with 50% of those buyers saying they would use it as a primary residence. That compares with just 33% who consid- ered auction in 2022, 29% of whom said they would use it as their primary residence. More education about how the auction process works could help make this option accessible to more buyers. Where to Go from Here R egardless of the market's next fluc- tuations, twists, or turns, lenders can strengthen their stances by providing an extraordinary consumer experience. That experience begins by simply understand- ing where homebuyers are and delivering precisely what they need. F E A T U R E What are borrowers looking for in their home purchase process? Tech-enabled experiences.