With interest rates still comparatively low and the 2015 homebuying season about to begin, many buyers are turning to technology to make the homebuying process easier. A poll commissioned by Discover Home Loans found that nine out of 10 survey respondents used some sort of online technology to help them with the home financing process. Eighty-one percent said that technology made it easier to share financial information with their lender and 69 percent said it helped them keep track of important financial documents.
Communication Between Homebuyer and Mortgage Banker Evolves
Thirty-six percent of homebuyers said that completing the entire financing process online with no phone calls or in-person meetings would make the process easier. However, the majority still prefer to have a relationship with their mortgage banker:
- Nearly all homebuyers surveyed communicated with their lenders by phone, 94 percent, or email, 88 percent, while 67 percent of respondents met in person
- Among those who used electronic communications, 68 percent felt it made it easier to work with their lenders
- More than half, 54 percent, filled out their mortgage application online
“As technology continues to become an integral part of our daily lives, it’s only natural that buyers also use it to make the home financing process easier,” said TJ Freeborn, senior manager of customer experience at Discover Home Loans. “Not only are homebuyers using the internet to look at homes and neighborhoods, they’re also using it to submit documents and complete applications online.”
Technology Streamlines the Mortgage Process
Four out of five homebuyers submitted documents electronically to a lender, realtor or at closing. Of those, nine out of 10 say it was easy to do and saved time. Also, recent homebuyers felt secure submitting documents virtually. Eighty-six percent felt comfortable sharing personal and financial information electronically with their lenders.
Homebuyers who used online tools to submit documents said it saved time (92 percent), helped them stay organized (83 percent), and cut down on paperwork (68 percent).
- More than 70 percent of homebuyers submitted lender documents through email, an app or a website
- Almost half, 47 percent, were pre-qualified for a mortgage through a lender’s website
- Four in 10 read online lender reviews to help them choose a lender
Online Financing Should Continue to Change
When thinking back about the lending process, homebuyers believe online improvements would have made it easier to work with their lender, including:
- Secure ways to submit electronic documents, 77 percent
- Easy-to-use online applications, 72 percent
- 24-hour support, 52 percent
The national survey of 1,003 recent homebuyers was commissioned by Discover Home Loans and conducted by Versta Research, an independent survey research firm (www.verstaresearch.com), Sept. 5 to Sept. 17, 2014. The sample was carefully balanced and weighted using American Housing Survey and National Association of Realtors data to ensure an accurate representation of homebuyers by region, age, marital status and first-time versus repeat homebuyer status.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America's cash rewards pioneer, and offers home loans, private student loans, personal loans, home equity loans, checking and savings accounts, certificates of deposit and money market accounts through its direct banking business. It operates the Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discover.com/company.
1. How would you rate your experience with just the financing process?
unweighted (n) | 1003 | |||
NET POSITIVE | 81% | |||
Very positive | 19% | |||
Positive | 62% | |||
NET NEGATIVE | 19% | |||
Negative | 15% | |||
Very negative | 4% | |||
2. Did it feel easy or difficult?
unweighted (n) | 1003 | |||
NET EASY | 67% | |||
Very easy | 14% | |||
Easy | 52% | |||
NET DIFFICULT | 33% | |||
Difficult | 28% | |||
Very difficult | 5% | |||
3. Did it feel like the financing process was clear or was it confusing?
unweighted (n) | 1003 | |||
NET CLEAR | 69% | |||
Very clear | 15% | |||
Clear | 54% | |||
NET CONFUSING | 31% | |||
Confusing | 27% | |||
Very confusing | 5% | |||
4. When you were getting a mortgage or home loan, did you:
RANDOMIZE ROWS. KEEP A/B TOGETHER, IN THAT ORDER.
unweighted (n) = 1003 | Yes | No | ||||||
a. | Fill out an online application for a mortgage or home loan? | 54% | 46% | |||||
b. | Get pre-qualified for a mortgage through a lender’s website? | 47% | 53% | |||||
c. | Read reviews of lenders online? | 39% | 61% | |||||
d. | Submit documents to your lender through e-mail, apps or a website? | 71% | 29% | |||||
5. [IF NON-TECH USER, SKIP AND PUNCH ALL AS ‘NO’] And finally, did you: RANDOMIZE ROWS. KEEP A/B TOGETHER, IN THAT ORDER.
unweighted (n) = 1003 | Yes | No | ||||||
a. | Read profiles of real estate agents online? | 37% | 63% | |||||
b. | Submit documents to a real estate agent through e-mail, apps or a website? | 68% | 32% | |||||
c. | Scan in and submit closing documents electronically after signing them at home? | 50% | 50% | |||||
d. | Set up an appointment with a home inspector through e-mail, apps or a website? | 42% | 58% | |||||
e. | Use a cell phone to take pictures or videos of a home to show family or friends? | 67% | 33% | |||||
f. | Visit a website you got from a newspaper, flyer or yard sign? | 35% | 65% | |||||
6. Which of these, if any, were among the reasons you didn’t use technology very much to help you find and buy your home?
RANDOMIZE ROWS.
unweighted (n) = 118 | Yes | No | ||||||
a. | I don’t trust a lot of the information online. | 39% | 61% | |||||
b. | I felt overwhelmed by the amount of information online. | 25% | 75% | |||||
c. | I just prefer a more hands-on experience. | 81% | 19% | |||||
d. | I was worried about security. | 31% | 69% | |||||
e. | It was too hard to find helpful resources. | 17% | 83% | |||||
7. [IF ONLINE APPLICATION] Was it easy or difficult to apply for a mortgage or home loan online?
unweighted (n) | 527 | |||
NET EASY | 81% | |||
Very easy | 15% | |||
Easy | 66% | |||
NET DIFFICULT | 19% | |||
Difficult | 16% | |||
Very difficult | 3% | |||
8. [IF NOT SUBMITTED ANY DOCUMENTS USING TECH] [HIDE FIRST SENTENCE IF Q11=NO] You said you didn’t submit any documents electronically via e-mail, apps or a website.
Did you have the option to submit any documents electronically?
unweighted (n) | 217 | |||
Yes | 42% | |||
No | 58% | |||
9. [IF NO] If you’d been given the option to submit documents electronically, would you have done it?
unweighted (n) | 124 | |||
Yes | 29% | |||
No | 21% | |||
I’m not sure | 49% | |||
10. How much do you agree or disagree that using technology made the financing process easier?
unweighted (n) | 885 | |||
NET AGREE | 85% | |||
Strongly agree | 21% | |||
Agree | 64% | |||
NET DISAGREE | 10% | |||
Disagree | 8% | |||
Strongly disagree | 1% | |||
Don’t know | 6% | |||
11. Do you think using technology made it easier or harder to:
SHOW GRID. DO NOT RANDOMIZE ROWS. | ||||
a. Learn about the financing process? | ||||
unweighted (n) | 852 | |||
Easier | 51% | |||
Neither harder nor easier | 45% | |||
Harder | 4% | |||
DOESN'T APPLY TO ME | 32 | |||
b. Find the right lender for your mortgage or home loan? | ||||
unweighted (n) | 750 | |||
Easier | 48% | |||
Neither harder nor easier | 50% | |||
Harder | 2% | |||
DOESN'T APPLY TO ME | 130 | |||
c. Fill out mortgage or home loan applications? | ||||
unweighted (n) | 811 | |||
Easier | 65% | |||
Neither harder nor easier | 32% | |||
Harder | 3% | |||
DOESN'T APPLY TO ME | 70 | |||
d. Keep track of important financial documents? | unweighted (n) | 847 | ||
Easier | 69% | |||
Neither harder nor easier | 28% | |||
Harder | 2% | |||
DOESN'T APPLY TO ME | 35 | |||
e. Share financial information with your lender? | ||||
unweighted (n) | 843 | |||
Easier | 81% | |||
Neither harder nor easier | 17% | |||
Harder | 2% | |||
DOESN'T APPLY TO ME | 41 | |||
12. How did you communicate with your lender?
DO NOT RANDOMIZE ROWS.
unweighted (n) = 1003 | Yes | No | ||||||
a. | In person | 67% | 33% | |||||
b. | Postal mail | 33% | 67% | |||||
c. | Phone calls | 94% | 6% | |||||
d. | Text messages (SMS) | 28% | 72% | |||||
e. | 88% | 12% | ||||||
f. | Instant messages or online chat | 8% | 92% | |||||
g. | Social media (e.g., Facebook, Twitter) | 6% | 94% | |||||
13. [IF YES TO D-G] Did communicating with your lender electronically make it easier or harder to work with them?
unweighted (n) | 909 | |||
Easier | 68% | |||
Neither harder nor easier | 30% | |||
Harder | 2% | |||
14. How comfortable [were you//would you have been] sharing your personal and financial information with your lender electronically?
unweighted (n) | 1003 | |||
NET COMFORTABLE | 86% | |||
Very comfortable | 26% | |||
Comfortable | 60% | |||
NET NOT COMFORTABLE | 11% | |||
Not comfortable | 9% | |||
Not at all comfortable | 2% | |||
Don’t know | 3% | |||
15. Thinking back on it now, would any of these have made it easier to work with your lender?
RANDOMIZE ROWS.
unweighted (n) = 1003 | Yes | No | ||||||
a. | 24-hour support | 52% | 48% | |||||
b. | A secure way to submit documents electronically | 77% | 23% | |||||
c. | An easy-to-use online application | 72% | 28% | |||||
d. | More information on their website | 49% | 51% | |||||
e. | Doing everything online, with no phone calls or meetings [ANCHOR ROW] | 36% | 64% | |||||
16. Do you think using technology helped you:
SHOW GRID. RANDOMIZE ROWS. | ||||||||
unweighted (n) = 885 | Yes | No | Don’t know | |||||
a. Be a more confident homebuyer? | 69% | 22% | 9% | |||||
b. Be a smarter homebuyer? | 76% | 13% | 11% | |||||
c. Cut back on paperwork? | 68% | 26% | 6% | |||||
d. Save money? | 47% | 35% | 17% | |||||
e. Save you time? | 92% | 6% | 2% | |||||
f. Stay organized? | 83% | 12% | 5% | |||||
Contacts:
Susan J. Diaz de Leon
224-405-5344
Susandiazdeleon@discover.com