According to a recent survey by Fannie Mae involving 1200 respondents who got their mortgage in 2016, person-to-person sources remain the most preferred choices for obtaining mortgage information.
Human factor is still considered by American homebuyers as one of the most influential factors in choosing where to get advice for buying a home.
Per the study, homebuyers used an average of 3.4 different sources to obtain mortgage information.
The most cited source are real estate agents who were pinpointed by 77 percent of responders. This is followed by mortgage lenders who were preferred by 75 percent of the survey population. Online sources took 69 percent of the share, while 63 percent said they get information from friends and family.
However, when asked which among the cited sources were most influential to them, 32 percent cited lenders, 30 percent said real estate agents, 16 percent referred to their families and friends, while only 13 percent said they were primarily influenced by online sources.
The trend is uniform across all generations including millennials who many can assume to be more predisposed to use technology when undergoing a process as complicated as a mortgage. According to millennials who made up 38 percent of all survey respondents, real estate agents are their most preferred source of mortgage information (29 percent) followed by mortgage lenders (27 percent), family and friends (23 percent), and online sources (14 percent).
When those who cited online sources were asked why they preferred the platform, 46 percent said because it’s convenient. Only 3 percent said online sources are credible. Meanwhile, those who chose person-to-person sources said they did so because they are trustworthy.
Leaning towards complacency?
Does all this data mean that person-to-person players in the mortgage dynamics can now relax on the threat of technology taking over their jobs? Experts say doing so may only be temporarily beneficial. As people get more and more oriented to the benefits of online platforms, human players can slowly become obsolete.
While this transition happened almost instantaneously with other industries such as telecommunications and transportation, the more sophisticated setup of mortgages – purchases and refinances covered – make it difficult for tech to permeate the recesses of the traditional process.
It’s been a long time coming and the changes are long overdue. If person-to-person players want to remain relevant, they must at least learn to integrate technological tools to their processes in order to be carried on in the transition. The merging of human sensibility and technological accuracy can deliver excellent mortgage service. The tech provides a firm information and data backing, while the human factor keeps the service familiar and perhaps less intimidating for many home buyers.
At this time, however, the market is keeping mortgage personal. While various mortgage tools are already available, total adaptation does not happen in an instant. The data provides evidence that support from mortgage and real estate professionals are vital in helping majority of home buyers succeed in their home buying or home refinancing endeavor. It does not, however mean that they should leave out the tech aspect to able to deliver the required service.Click to See the Latest Mortgage Rates»