Technology is increasingly powering the homebuying experience and according to a Homebuyer Insight Report released by Bank of America on Wednesday, to coincide with the launch of its Digital Mortgage Experience, that seamlessly guides clients through the mortgage process via the bank’s mobile banking and online platform. The report indicated that more people were comfortable about applying for a mortgage online than they are with online dating.
Social media apps like Instagram and the fear of missing out (FOMO) are also playing a huge role in motivating millennials to buy a home. The report found that seeing photos of others’ home on social media motivated many millennials to buy for the first time, with 33 percent millennials responding to the question on what they felt on seeing others post pictures of their homes on social media with the answer: “If they can buy a home, why can’t I?”
It wasn’t just buying a home; millennials were more willing to share their home purchase on social media, more so than a new job or car, the study indicated. In fact, sharing a home purchase was ranked even above a birth announcement with 43 percent of all buyers and 53 percent millennials choosing this medium to share the purchase of their new abode.
Across generations, the study found that consumers were increasingly using mobile and other emerging technology when thinking of buying a home with 71 percent consumers referring to a real estate website or app during the homebuying process followed by 48 percent preferring to take a video tour of a home.
Consumers were also of the opinion that the reliance on technology would only increase. The study found that in the next 10 years 67 percent Americans believed that smart home and energy-efficient features would be standard in new construction, followed by 55 percent who thought mortgage applications would be entirely paperless in a decade. Around 53 percent consumers said that emerging technologies would allow the entire homebuying process to get completed in a matter of days.
Efficiency was also top of mind for all consumers who were surveyed for the study. When describing their ideal home buying experience, 64 percent said it should be simple and efficient over speed and automation.
The introduction of the Digital Mortgage Experience is the latest of Bank of America’s digital lending offerings, which include the recent broad availability of its mobile car shopping tool that enables clients to search 1 million cars in inventory from more than 2,400 auto dealers nationwide.
“Everything we do starts and ends with clients, and the Digital Mortgage Experience is designed to make their lives simpler,” said D. Steve Boland, Head of Consumer Lending at Bank of America. “Our new end-to-end experience empowers clients with complete convenience and control, while also offering unique access to lending experts every step of the way.”