The homebuying process still troubles many borrowers of all demographics due to the complexity associated with the mortgage application process.
A new survey from Digital Risk of 1,002 Americans between the ages of 18 and 54, found that first-time homebuyers are struggling with the mortgage loan process. The results found that 100 percent of respondents said the mortgage process was not “smooth and on time.”
Fifty-three percent of those surveyed blamed an increasingly rigorous regulatory environments as a top concern due to longer closing times, while 71 percent of 18 to 29 year-olds.
Digital Risk also found that those surveyed indicated mixed signals about the overall health of the economy. The report showed that 83 percent of respondents are ‘as confident’ or ‘more confident’ in their ability to make mortgage payments compared to last year. Meanwhile, 43 percent reported having little or no confidence in the economy.
Technology is yet another obstacle in the way of homeownership for many Americans. According to Digital Risk, 72 percent of 24 to 44 year-olds respondents are more likely to use smartphones for banking and transactions such as payments, while 55 percent conduct mobile banking with their devices.
“Technology solutions that stand to make the process more efficient only can gain momentum when buyers are reassured that they are not sacrificing security for speed,” said Digital Risk Co-Founder & Managing Partner Jeff Taylor.
Taylor added, “This data reinforces the fact that the younger prospective homebuyers are much more open to managing these transactions via mobile banking. The demographics of home ownership are changing, and technology must adapt to suit the needs of these emerging buyers."
Millennials are more comfortable than older generations with mobile mortgage technology, but Digital Risk found that a steep learning curve still exist when it comes to getting used to an automated process.
“The development of new technology has always faced a learning curve,” said Taylor. “We believe that financial institutions have an opportunity to be on the cutting edge of new technology, allowing them to capture market share among tech-savvy millennials.”
Taylor continued, “It’s a matter of trust. Consumers are more comfortable with technology when it is associated with a lender they already use. This reinforces the role of reputation and risk management as critical to the success of financial institutions. In the mortgage space in particular, companies with a strong track record stand to benefit from the rise of mobile tools.”