Mortgage Brokers like Palm State Mortgage Company work for you with a special hands-on approach. This can’t be matched by a point and click application process. After all, buying a house is most likely the largest and most significant commitment of a lifetime.
That’s why Palm State is here to walk you through the obstacle course of buying a home. As you might know, we’ve covered some points in a previous blog.
However, the proliferation of online mortgage companies has evoked flurries of questions from savvy homebuyers. Thus we decided it was time for an update about mortgage brokers. And now we begin a two-part series of blogs on mortgage brokers. Additionally, we will look at their role in the increasingly digitalized home mortgage process.
Click Here, Look There, Where Do I Start?
You may be asking yourself, how do I, or where do I start? It’s no surprise that in our modern world of online everything, it couldn’t be easier. Thus the ability to use point and click options for house-hunting, applications, approvals, inspections, and closings is at our fingertips.
However, an over-reliance on the high-tech conveniences can leave a buyer feeling confused, empty and alone.
Mortgage Brokers Know: Borrowers Crave the Human Touch
The human touch of a licensed Mortgage Broker can offer you a uniquely successful and smooth home buying experience. Surprisingly, every future homeowner needs that light in the darkness. They need a guide to lead them through the treacherous process.
- First and foremost, a Mortgage Broker will seek and find the best deals for your fiscal situation.
- Likewise, mortgage brokers provide shelter from the never-ending details and piles of documentation required by the mortgage process.
- Clearly, a Mortgage Broker is in your corner. He or she will act as a bridge over the troubled home-buying swamp of paperwork.
Ellie Mae’s 2019 Borrower Insights to the Rescue
First, we need to look into the prestigious online resource, HousingWire. Then, we need to take a look at Ellie Mae’s 2019 Borrower Insights Survey.
We investigated that resource to find the balance between high tech digital communication and high touch human interaction in the mortgage world.
Here, we find some interesting information for borrowers.
1. The survey stated that 50 percent of borrowers chose their lender based on offering an online application.
2. Specifically, they reported, “47 percent of respondents said access to an online portal for uploading documents was a factor in their decision.”
The Viral Popularity of Online Mortgage Shopping
Is the newer way to pursue a loan the better way? The survey stated 3 reasons for the popularity of online applications in the mortgage process:
- Online companies promise a quicker time to close (66%).
- They claim to have a simpler application process (61%).
- Often, they do give lenders more readily available information (54%).
Mortgage Brokers Draw Conclusions
You would think borrowers would not want direct human interaction with lenders. Wrong!
Think again, the research proved that in spite of the popularity of online tools, “Borrowers continue to show a strong desire for more options…” And they seem especially interested in “interaction and communication with their lender…”
What Does the Data Really Prove?
Looking beyond these statistics. Palm State Mortgage Company believes that people love their online mortgage tools. But then, that does not mean that they love doing the entire mortgage process online. Proof of this is found in 3 tell-tale facts:
The Tell-tale Feeling Behind the Data
First, “The survey showed that when borrowers fill out online applications, it is common for them to abandon the process.” Sometimes, they “take multiple sessions to complete it.”
Secondly, the Ellie Mae report added, “About one half that has used an online mortgage application finished in one sitting.” (Before you let that impress you, remember that 50% is not passing on any exam.)
Finally, About one-quarter of those mortgage applications started the application online. However, they did not finish it online. We feel very sad for all those applicants who gave up on their dream of homeownership because of a bad online experience.
Thus, we know that homebuyers continue to crave the human touch.
Mortgage Brokers Bridging the Gap
One of the vital functions of the mortgage broker is to bridge the gap between lenders and borrowers. Despite online possibilities, one-to-one communication is especially important for younger or first-time home buyers.
“Borrowers still crave human interaction in the midst of a digitally-driven loan origination process.”
Mortgage Brokers Vs Online Entities
A recent article in Housingwire listed numerous selling points for partnering with a mortgage broker. Then, we will highlight three benefits of human interaction from the article for your convenience:
Your mortgage broker Provides Direct communication with contacts from lenders who are known and reputable. This communication is accepted as important to younger and first-time borrowers.
Your mortgage broker offers reassurance for the loan timeline and keeps everyone on the same page for closing.
Nothing beats personalized customer service.
High Touch vs. High Tech Mortgage Solutions
We believe that Mortgage Brokers can infuse the mortgage process with those human elements of expertise, compassion, and knowledge.
- High tech, digital tools have their place.
- The high-tech part of the loan process compliments our dedicated work to find you the best possible mortgage for your fiscal situation.
Digital Mortgage Companies vs. Mortgage Brokers
Your Mortgage Broker’s proficiency lets you complete the financing and puts your one of a kind dream home within 30 days. Many online companies promise that time period but fail to deliver.
On the one hand, did you know that the online mortgage process often stretches to 60 days or more? This is opposite to the massive advertising campaigns that make the process sound fast and simple.
On the other hand, mortgage brokers are time-keepers and clock watchers. They keep track of each step of the process. Likewise, they inspire you and coach you to accomplish small goals each step of the way.
There are No Perfectly Digital Mortgages
Again, Ellie Mae reports, “We hear a lot these days about the benefits of the “digital mortgage.” The term is widely overused. Yet, its promoters have largely under-delivered on its true promise.”
However, mortgage brokers like Palm State Mortgage are with you for the entire mortgage process, step by step. We believe mortgage brokers can save more than time and money. They can save you stress and permit you to enjoy your new home.
Terrific Takeaways from High Touch vs. High Tech Loan Process
As we stated, digital tools are very beneficial to borrowers and lenders alike. However, we believe in the basics of what mortgage brokers do for you, with and without digital tools.
Hence, our next blog is really Part II of this one. Ten Secrets of the Successful Mortgage Broker.
Thank you for reading today’s Palm State Mortgage blog. And we hope you will continue to visit us as we bring you the latest news and information in the mortgage industry.