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AI Muscles Into Homebuying

Feb 13, 2025
Synechron Inc. and Paradatec have announced a strategic partnership and licensing agreement that will reduce costs and increase productivity for mortgage originators and servicers through more accurate document automation

1 in 3 buyers now rely on AI during the mortgage process, survey finds.

KEY TAKEAWAYS
  • 31% of respondents are more concerned than excited

AI has officially entered the homebuying market, and it’s not just a novelty—it’s becoming a necessity. A new survey from Veterans United Home Loans reveals that one in three homebuyers (32%) are using AI to search for homes, take virtual tours, and even calculate mortgage costs. And with 40% of prospective buyers interacting with AI at least once a day, it’s clear this technology is reshaping the way Americans approach one of the biggest financial decisions of their lives.

Despite AI’s growing influence, buyers are torn about what this means for the future. The survey finds 31% of respondents are more concerned than excited, while 29% are embracing it, and 28% are sitting on the fence—equal parts intrigued and uneasy. 

"With digital assistants and smart home devices gaining broader adoption in everyday life, AI tools are becoming a valuable resource for home shoppers," said Chris Birk, vice president of mortgage insight at Veterans United. “However, some buyers need balance – leveraging AI as a helpful tool while maintaining the human touch to guide and reassure buyers through life's biggest investments."

As things stand, AI is proving most useful in two key areas: home searches and virtual tours. Nearly 40% of buyers are using it to find listings and tour homes online, with 38% using AI to search in their preferred locations and 37% relying on it for virtual walk-throughs. 

But AI isn’t just about browsing—it’s helping buyers crunch the numbers, too. The survey finds 32% of veteran homebuyers use it to estimate mortgage payments, and 31% use AI tools to calculate how much home they can afford, get homebuying tips, or track market trends. Another 29% filter home listings based on specific criteria, 28% shop for mortgage rates, and 27% use AI to visualize renovations before they buy.

Companies are rapidly hopping in line with the trend. AngelAI, which offers a “new era of mortgage excellence,” has been at the forefront of lending technologies for a while. And more recently, Mr. Cooper threw their hat in the ring with the release of Agent IQ, a call center assistant tool. 

Younger buyers are leading the charge with 60% of Gen Z home shoppers interacting with AI daily, followed by 47% of millennials. Meanwhile, 36% of Gen X and just 18% of baby boomers report using AI that frequently.

As the younger generations continue entering the market, AI’s role in the homebuying process will only grow. The real question is: will it remain just a tool, or will it redefine the entire process? One thing is certain—AI isn’t knocking on the door anymore: it’s coming from inside the house.

About the author
Kathryn Fitzpatrick is an associate editor at NMP.
Published
Feb 13, 2025
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