Here at Blend, we develop digital mortgage solutions that process nearly $2 billion worth of U.S. mortgages every day. So far, our findings have shown an increasing demand for digital mortgage solutions and digital mortgage application processes.
In this article, we’ll break down some of the most critical discoveries of our data, and we’ll share compelling reasons for adding digital mortgage solutions and applications to your suite of lending services.
Why digital mortgage solutions are transforming lending
A recent Fannie Mae study points out that 66% of all borrowers prefer a digital mortgage application process. Furthermore, 75% of borrowers said they prefer to fill out a mortgage application online, while 70% want to submit documents online. Across the board, borrowers are showing an increasing demand for digital mortgage solutions.
Here are three convincing reasons why digital mortgage solutions are essential for future-proofing your lending services.
1) The demand for digital mortgage solutions is intergenerational
People generally think that millennials gravitate toward digital mortgage solutions, while older generations shun it. But that’s not what we’re seeing.
When evaluating who purchases digital mortgages, we found no statistical significance among different age groups. The older generations likely have more experience with the traditional lending application experience, which means they need less hand-holding throughout. Since they are well acquainted with the manual process, they’re often eager to adopt any tools that can streamline and improve the experience.
2) Digital mortgage solutions speed up loan completion time
“The majority of homebuyers said they’d like to see the mortgage process, from application to close, completed in one month,” said Henry Cason, SVP of Digital Products for Fannie Mae.
The nationwide median mortgage completion time is 35 days, so it’s apparent that the mortgage application process needs to be more efficient.
In comparison to a traditional mortgage application process, a digital mortgage application experience vastly improves the customer experience with:
- Easy single sign-on (SSO) authentication
- Pre-filled application fields with existing banking information on any digital device
- Self-serve pre-approval
- Seamless connection options to borrowers’ asset, payroll, and tax accounts
- Real-time assistance throughout the application process
These features translate into powerful time savers. Lenders on the Blend mortgage platform shave up to 7 days from the application cycle time using traditional approval methods. When using Blend’s one-tap approval feature, clear-to-close timelines shrink to less than 14 days, significantly below the 30-day minimum threshold.
3) Digital mortgage solutions offer greater flexibility
We’re living in an era when convenience and customer experience reign. Providing omnichannel solutions is pivotal if your lending business wants to succeed in the long run.
An omnichannel experience allows lenders to meet customers anywhere, whether they’re applying for a mortgage with their smartphone, from their desktop computer, or during an in-person visit. Through an omnichannel approach, lenders can streamline the digital mortgage application process and close more loans, faster.
Omnichannel flexibility also builds trust. Results from Fannie Mae’s research show that 65% of respondents want to talk to an expert who can explain mortgage terms and options, and 58% prefer a person to help them review final documents. Having real-time assistance at every step of the mortgage application process is crucial, and digital mortgage solutions offer these features.
Blend simplifies and accelerates the digital mortgage application
A mortgage — probably the largest financial transaction of one’s life — is complicated. Most consumers want somebody they trust to educate them and help them through the process. Borrowers also desire a mortgage application experience that’s simple, fast, and stress-free.
At Blend, our goal is to empower your lending business to foster deeper customer relationships and provide better user experiences. We believe in being omnichannel, so we can offer a great digital mortgage solution to our customers.
For consumers, we are the digital way they can engage with the lender. They can complete their application and accelerate the process of getting the home they want as quickly as possible.
For lenders, we are the platform that facilitates digital engagement with the borrower so they can collect the necessary information to get a robust, completed application. It’s more important than ever to provide a simple, fast, and smooth experience for your loan customers.
With Blend, it’s easy to engage when you want, how you want, and where you want. Customers can stay in touch with their loan team and get a hold of a specialist whenever they need trusted advice.