Published on December 02, 2015
Written by The Servion Group
Society is continually using more technology to aid daily activities. From shopping for holiday gifts or groceries, regular tasks are becoming mobilized. The mortgage industry may be following suit.
According to Fannie Mae's Mortgage Lender Sentiment Survey, the opportunity for mobile apps in the lending industry is especially promising.
"The lower priority that lenders are placing on mobile channels, and the differences in lender and consumer views on mobile tool functionality, could place lenders at risk of not meeting consumer demand or encouraging new entrants to address this growing demand at the expense of existing firms," said Fannie Mae's Director of Business Strategy and Economic Strategic Research Steve Deggendorf. "Getting the right mix of traditional (person-to-person), online, and mobile channels and tools may be a key to future success."
Mobile is modern
Inman, a real estate industry website, noted that more than 90 percent of interested homebuyers begin their search for a house online. In addition, these individuals are also searching and comparing mortgage lenders and researching rates using the Internet. Today's buyer is interested in conducting ample research prior to investing in a new home, so catering to these needs is critical for successfully providing optimal service to the modern consumer.
When businesses fail to offer customers with a mobile app to assist them with researching and buying a home, it is akin to a business not having a website at the turn of the 21st century. Mobile apps allow businesses to meet the new and developing needs of modern consumers.
Consumers want mobile apps
In addition, today's interested homebuyers are interested in interacting with lenders in a more updated fashion. Recent buyers want mobile tools to be more prevalent in the future if they decide to shop for another mortgage. Only 12 percent have used a smartphone or tablet to get a mortgage quote. However, 30 percent would like to use their mobile devices to research and find a mortgage quote in the future, according to Fannie Mae.
When serving clients, it is critical to adapt to their wants and needs. Embracing mobility will demonstrate the ability to adapt to changing needs and cultivate trust and loyalty among customers.
Mortgage lenders aim to adopt
According to the survey conducted by Fannie Mae, among those firms who do not currently offer a mobile app, 40 percent of them have plans to offer one to their clients in the next year. As technology becomes more advanced, it provides a unique opportunity for lenders to connect with interested buyers and facilitate an improved application process for hopeful homeowners.
"Mobile apps allow businesses to meet the new and developing needs of modern consumers."
With a mobile app, consumers can track where they are in the process and better communicate with their loan officer and real estate professional. Better communication will translate into a faster and more efficient lending experience for all parties involved.
Lenders can capture more leads
Another benefit of embracing technology and offering consumers a mobile app is that it will provide an opportunity for loan officers to advertise their services in a unique way, noted National Mortgage News.
"A lot of people now exist with what I call their 3-by-5 business card — their phone," said Quicken Loans CEO and Chairman of the Mortgage Bankers Association, Bill Emerson. "You have an opportunity to gain market share if you interact with people the way they are comfortable interacting."
Professionals can have consumers download their company's mobile app and check out a lender through a smartphone or tablet. It is a quick, efficient and effective way for professionals to capture leads.
"The more efficient and effective you can be there, the better you will do in the marketplace," said Emerson.
Facilitate strong communication
Another benefit to lenders offering a mobile application is the ability to continue a dialog between the appropriate parties. By staying updated, consumers can feel confident they will close on time and have provided all necessary paperwork throughout the process. If anything is missing, lenders can quickly reach out and communicate this with consumers through a mobile application.
"For purchase customers, the key is staying in touch over time and being ready to move quickly to approve when they find a home," said Keith Luedeman, founder of goodmortgage.com, according to National Mortgage News. "Our technology allows us to do so in a seamless and coordinated way that customers seem to appreciate."