The findings reveal that, even for digital-first homebuyers (people who prefer using digital tools when shopping), it's critical for lenders to balance technology with the appropriate degree of personalization and human interaction.
NEW YORK, Oct. 10, 2023 /PRNewswire-PRWeb/ -- New research from Arizent, parent company of National Mortgage News, a leading information resource serving decision makers in the mortgage industry, analyzes what homebuyers expect to experience at every stage of the borrowing process. The findings of the report, Engaging the Digital-first Homebuyer, reveal that it's critical for lenders to find the appropriate balance between technology and human interaction.
All survey respondents say they did plenty of work online before they started to shop for a home, such as getting preapproved for a loan, using a mortgage calculator and searching for a mortgage broker.
"Investing in technology that serves the initial stages of a homebuyer's mortgage search makes sense, no matter who lenders are trying to reach," says Janet King, VP of Research for Arizent. "But such a significant transaction also calls for in-person service, even for younger, digital-first homebuyers. As much as online tools are important for convenience and efficiency, they can't replace human interaction and relationships at key points in the homebuying process."
For all demographic groups, digital support for pre-purchase activities is crucial for mortgage lenders to engage homebuyers early, with 84% of respondents reporting conducting at least half of their purchase tasks online.
The human element is still important, however. When it comes to referrals, a quarter of digital-first respondents report that they relied on a real estate agent's recommendation for their loan officer. When it comes to the borrowing experience, first-time buyers also value being able to meet with a human, face to face (50%), along with having access to the digital tools that make the process more convenient.
The continued importance of human interaction comes through on the topic of conversational artificial intelligence like chatbots and intelligent virtual assistants (IVAs). Because this technology is so new, 85% of respondents say they did not interact with chatbots or IVAs, mostly because they didn't have the opportunity. Notably, 29% of respondents say they chose not to use this technology because they wanted to speak, chat or email with a person instead.
To learn more about reaching borrowers, their expectations and preferences during the homebuying process, and the role of AI — including reactions from customers who have used it — download the full report here: https://www.nationalmortgagenews.com/research-report/reaching-homebuyers-the-right-way
Research methodology
This study from Arizent, parent company of National Mortgage News, explores homebuyers' behaviors and the use of digital tools and channels as they search for new homes and acquire mortgages. This research was conducted online in August 2023 among 500 U.S. adults involved in obtaining a new mortgage for a home purchase in the last 24 months.
For more information on this survey or other Arizent research, contact:
Janet King
Vice President, Research
Arizent
[email protected]
M 207-807-4806
About Arizent
Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events and access to Leaders, an executive forum. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News and Digital Insurance.
About National Mortgage News
National Mortgage News is an award-winning comprehensive digital information resource serving the entire residential mortgage industry, including depositories, nonbank lenders and servicers, brokerage firms, vendors and regulators. In addition to providing news analysis and perspective, NMN convenes industry participants to provide insight on topics including regulation, compliance, technology and loss mitigation.
Media Contact
Janet King, Arizent, 212-803-8500, [email protected], www.Arizent.com
SOURCE Arizent
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