A new survey has concluded that then it comes to researching mortgages, Millennials prefer the D.I.Y. aspect
of the online world, while Baby Boomers prefer to communicate with people.
According to the survey, "The Digital Mortgage Experience: A Study of Shifting Borrower Expectations
," from Los Angeles-based Velocify
, more than one-third of all borrowers prefer self-service websites, especially during the research stage of getting a mortgage. But as the process evolves, demographic shifts occur. The survey found Millennials were 45 percent more likely to find their lender online than Baby Boomers, who were 87 percent more likely to use their current bank or lender for their home loans.
However, only 10 percent of borrowers who received a mortgage in the last year chose their lender based on a referral from a real estate broker. Borrowers who received a mortgage in the last year were 42 percent less likely to find their lender based on a real estate broker referral compared to borrowers two to five years ago. As for the types of loans being pursued, 47 percent of refinancing borrowers used an online lender, compared to 38 percent of purchase borrowers
"The most interesting discovery was not how borrower behaviors have evolved, but where they are headed," said Nick Hedges, Velocify President and CEO. "The trend line in our data shows that all borrowers, regardless of age, have a strong preference for more online and digital interaction with their lender. To succeed in this environment, lenders have to put the borrower at the center, which means an easy interface that offers transparency into the entire loan lifecycle, but with humans behind it."