Remaining a Player in the New Home-Buying Experience

  • Share:
technology

Technology, home buying, financing, mortgage, fintech

The recent downward slide in mortgage rates could mean more home buyers hunting in earnest, and tech-savvy consumers, especially millennials looking for their first home, are accustomed to the accessible, end-to-end digital experiences they get when purchasing other items online. Simply hosting a mortgage loan application on a website is no longer enough to stay competitive in the lending market. For credit unions, this means upgrading their digital experience to compete with big banks, fintech-powered community banks, wholesalers, technology giants, etc.

Credit unions need to review at which points they interact the most with consumers over the course of the home-buying journey, and whether they could benefit from not only offering a more convenient experience, but also one that supports and engages the member throughout the entire process. Millennials are used to being able to compare options at a minute’s notice. Those looking for a new home will be sure to compare lenders based on not only their rates, but also on the convenience and flexibility of their services.

Bridging the gap between home discovery and financing

The home-buying process has changed, like everything else touched by the digital transformation that has disrupted industries and introduced new competitors. Home buyers no longer come into credit union branches at the tail end of a house hunt (if they come into a branch at all). The home-discovery-to-loan-application process for most, and especially millennials (the largest borrower cohort today), is entirely online. The challenge, therefore, for credit unions is twofold: to gain first contact and to own the center of the customer journey, from research to finding an agent, to falling in love with a house and finally pulling the trigger on a purchase. By bridging the gap between home discovery and financing, credit unions can build deeper relationships with their members as well as guide them through what can be a difficult home-buying process.

Credit unions need to ensure they have the technology and ease-of-use necessary to facilitate this all-online search millennials demand, adding the value of introductions to real estate professionals, personalized support and guidance in finding an affordable home to their mortgage loan process.

millenials, home, mortgage, neighborhood, first-time, first time, student, debt, loan, app, mobile

 

Getting homebuyers to the website

 

Financial institutions have trouble drawing house hunters to their websites early on in the home discovery process. According to a study from SimiliarWeb, this is especially true when mortgage rates are relatively low, so credit unions have to work harder if they want to get more eyes on their mortgage pages. A credit union’s website is often the first thing that prospective mortgage shoppers will look at when comparing their financial institutions for rates.

Is the navigation to the home-lending page clear and easily accessible? Don’t make home buyers hunt down the mortgage page, or deal with obstacles in the way.

What features make your website stand out compared to competitors?

Credit unions have a chance here to personalize a member’s digital house-hunting experience. Instead of leading upfront with the contact info of loan officers, chat bot pop-ups or mortgage applications, credit unions should think outside of the box to what a home buyer would appreciate.

House hunters want to look at houses. Rather than a flat webpage with static information, credit unions should instead consider a multi-channel approach that includes the entire home-buying process, from pre-approval to finding a home, an agent and closing. In particular, lenders are focusing on mobile-first approaches due to the growing number of house hunters beginning and continuing their search on mobile devices.

There is a vast difference between a flat webpage and a white-label platform that provides end-to-end engagement, especially if that platform comes with high domain authority and can be rapidly indexed by search engines.

online, real estate, agent, tablet, open house

The best home-buying experience available, right at your local credit union

Credit unions are competing with companies that place a priority on how quickly and easily users can refinance a home or buy a house. Consumers believe that purchasing a home should not be a difficult process, and end-to-end personalized, self-service platforms are making it easier than ever for consumers to research homes, find agents, get alerted to new listings and finalize paperwork. The benefit of this aggregation is that lenders can keep home buyers on one platform, address pain points easily and provide mortgage and real estate support throughout the home-buying journey.

So what makes for a better experience? Well, next to rates, fees and turnaround, home buyers are most interested in how lenders communicate, what technology they use and what kind of support they can expect.

Communication

Communication can make or break relationships with members. Home buyers are interested in how a lender communicates, how responsive they are and the quality of that communication. Consumers want lenders to be able to use all the usual communication channels — phone, text, email, etc. — and take their personal preferences into account. Is the lender staying in touch and responding to messages promptly? Is the lender working with a first-time home buyer, clarifying details and using easier-to-understand language? Home buyers don’t want to work with lenders who obfuscate the process with technical-sounding jargon or who aren’t quick to reply to questions.

Technology

Having an online application process or borrower portal could swing home buyers. According to the 2019 Borrower Insights Survey from Ellie Mae, 50% of borrowers said they chose their lender based on the existence of an online application or portal. With many millennials starting and completing their home search on a mobile device, it’s little surprise that they also expect the same from their home loan process. An application or portal that can be accessed on mobile is also a solid method of maintaining a presence with consumers throughout their home-buying journey.

Support

Buying a house can be a daunting experience, and many millennials looking for their first home receive little to no guidance throughout the process. Where do they start? How do they find the best mortgage rates, agents and listings? Consumers are savvy enough to do research, but they also want an advisor on their side, and for many members, they naturally turn to their credit unions, not just for better rates, but also for advice. According to a recent survey from Raddon, Americans consider their primary financial institutions their most important financial literacy resource, over online sources or family and friends.

financial, literacy, resources

A credit union that provides ongoing support for not just pre-approval, but the whole home-buying process will build greater loyalty and engagement with members for every home purchase.

  • Share:


« Return to "Trends"
TrendScan logo
<< Back to Articles

Latest Trends

  1. Opportunities and Risks of Banking for Marijuana-Related Businesses
  2. Experience Company Growth and Discovery with Employee-Driven Communication
  3. Should You Still Be Concerned about ADA Website Compliance?
  4. The Member Service Experience
  5. Become a Tax Resource for Members
  6. Don't Get Snagged on ADA Compliance Requirements
  7. Are You Ready to Adopt a Continuous Performance Management System?
  8. Anticipating Change with a Succession Plan
  9. The Role of HR and Hiring Managers in the Candidate Experience
  10. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  11. The Planning Process - Improved
  12. The Performance Management Conundrum: Structure vs. Creativity
  13. Consumer Attitudes Toward Digital Advertising
  14. Building a Website with the User in Mind
  15. Is Your Executive Compensation Still Appealing?
  16. Are You Properly Rewarding Your CEO?
  17. What Credit Unions Should Do with Ambiguous ADA Standards
  18. Content Marketing: Well Worth the Effort
  19. 5 Things Credit Unions Can Learn from Cyber Attacks
  20. Your Social Media Accounts Deserve Quality Content
  21. Credit Unions Could Replace Predatory Lenders
  22. The Quest for a One-Stop Shop Financial App
  23. 7 Tax Changes Your Members Need to Know About
  24. Learning Management Systems: What Credit Unions Should Consider
  25. Continuous Performance Management is Disrupting HR
  26. Volunteer and Young Board Members Need Development
  27. Americans’ Lack of Financial Literacy Is an Opportunity for Credit Unions
  28. What’s Hot in Performance Management Technology
  29. Credit Union Compensation: Philosophy or Strategy?
  30. 3 Succession Plans Your Credit Union Needs
  31. The Website Audit Your Credit Union Needs
  32. Cut Through the Noise and Deliver Value Members Want
  33. The Importance of Creating Quality Content
  34. How Useful Are Member Personas for Credit Union Marketing Teams?
  35. Optimizing Websites for Voice: What You Need to Know
  36. Why You Should Invest in an Applicant Tracking System
  37. Consumer Appetites in Mobile Innovation
  38. What Borrowers Wished Credit Unions Knew
  39. Why HR Should Take Advantage of Employee Self Service
  40. Shifts and Trends to Know About in E-Learning
  41. 3 Website Design Trends for 2019
  42. Just How Distracted Are Consumers?
  43. Selling Payments and Wealth Management Services
  44. 3 Key Factors for Creating Good Content
  45. Build Up Membership Through Supportive Savings Programs
  46. Wanted: Apps for Clarification and Simplification
  47. The Win-Win Results of Prize-Linked Savings for Credit Unions and Members
  48. People Analytics: Bringing HR and Data Together
  49. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  50. Prioritizing the Credit Union Employee Experience
  51. Do You Know Why Payday Loans Are Used so Much?
  52. Popular DDoS Mitigation Methods in 2019
  53. The Credit Union Advantage for the Digital Customer
  54. Preparing a Transparency Communication Plan
  55. The Quickest Way to Understand Enterprise Risk Management (ERM)
  56. Preparing for Compensation Transparency
  57. Is Your CMS the Right Fit?
  58. 4 Steps to Increased Social Media ROI
  59. Keeping Up with Digital Lending Convenience
  60. 6 Factors for Choosing the Right ESS System
  61. Are You Missing Out on the Power of Video?
  62. A Simple Way to Unify Your Marketing Efforts
  63. How Credit Unions Can Formalize the Branding Process
  64. 5 Guideposts to Measure Your Brand Promise Against
  65. 2 Big FinTech Goals for Credit Unions
  66. Making Sure You Have the Right Leaders in the Right Seats
  67. What the C-Suite Wants out of Social Media
  68. Are Your Landing Pages up to Snuff?
  69. The Dream Team for Successful Online Customer Interactions
  70. How to Identify What You Want in an ESS
  71. The Best Compliance Training with New Topics You Will Need
  72. Empowering Employees and HR with the Latest Technology
  73. Credit Unions Can Compete with Shadow Banks
  74. Identifying Marijuana-Related Businesses
  75. Caution: Customers Don't Always Ask for What They Want
  76. How Credit Unions Can Embrace Storytelling in Marketing
  77. How to Generate Content with Fewer Resources
  78. Content, Tools, and Channels to Capture Consumer Attention
  79. If Your Site Isn't Mobile Optimized, You're Losing Out
  80. Protect Your Credit Union with a Website Accessibility Response Plan
  81. Don't Underestimate the Power of Financial Education
  82. Don't Undervalue Your Brand Promise
  83. 3 Factors Impacting Credit Union Compensation Plans
  84. Underestimate the Onboarding Process at Your Peril
  85. Leveraging Social Media for Member Engagement
  86. 3 Brand Promises Credit Unions Can Learn From
  87. Finding the Best Platform for HR Technology
  88. Serving the Underbanked and Millennials
  89. Why You Need ERM in Your Strategic Planning
  90. A Content Management System Will Make Your Life Easier
  91. Enterprise Risk Management — Where to Start
  92. Bankers associations’ opposition to mergers does a disservice to member banks and to consumers
  93. The Quickest Way to Find the Right (and Safest) CMS
  94. Is Your Credit Union Supported by the Four Pillars of Digital Banking?
  95. Omnichannel Delivery: Banking Based On Members
  96. The Easiest Way to Deliver Content for Employee Development
  97. Remaining a Player in the New Home-Buying Experience
  98. You Know You Need an LMS — Now What?
  99. You Might Already Have the Solution to Your Current Talent Competency Gap
  100. Predict the Future of Mortgage Lending with Analytics
  101. Achieving the Golden “Narrative Transport” in Brand Storytelling
  102. The Secret to Future-Proofing Your Organization
  103. The Process of Crafting a Relatable, Moving Brand Story

Related Trends

  1. Remaining a Player in the New Home-Buying Experience
  2. Predict the Future of Mortgage Lending with Analytics
  3. Is Your Credit Union Supported by the Four Pillars of Digital Banking?
  4. Omnichannel Delivery: Banking Based On Members
  5. The Quickest Way to Find the Right (and Safest) CMS
  6. A Content Management System Will Make Your Life Easier
  7. Credit Unions Could Replace Predatory Lenders
  8. 5 Things Credit Unions Can Learn from Cyber Attacks
  9. Do You Know Why Payday Loans Are Used so Much?
  10. What Borrowers Wished Credit Unions Knew
  11. Serving the Underbanked and Millennials
  12. Should You Still Be Concerned about ADA Website Compliance?
  13. Don't Get Snagged on ADA Compliance Requirements
  14. Consumer Appetites in Mobile Innovation
  15. The Quest for a One-Stop Shop Financial App
  16. Wanted: Apps for Clarification and Simplification
  17. What Credit Unions Should Do with Ambiguous ADA Standards
  18. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  19. Building a Website with the User in Mind
  20. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  21. 3 Website Design Trends for 2019
  22. The Credit Union Advantage for the Digital Customer
  23. Optimizing Websites for Voice: What You Need to Know
  24. Is Your CMS the Right Fit?
  25. 2 Big FinTech Goals for Credit Unions
  26. Caution: Customers Don't Always Ask for What They Want
  27. The Website Audit Your Credit Union Needs
  28. Keeping Up with Digital Lending Convenience
  29. Protect Your Credit Union with a Website Accessibility Response Plan
  30. Credit Unions Can Compete with Shadow Banks
  31. Popular DDoS Mitigation Methods in 2019

Industry insights
to your inbox!

Subscribe