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.

millennials home buying charts

 

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.

home buying information diagram

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. Identifying Marijuana-Related Businesses
  2. Cut Through the Noise and Deliver Value Members Want
  3. Opportunities and Risks of Banking for Marijuana-Related Businesses
  4. 3 Key Factors for Creating Good Content
  5. A Content Management System Will Make Your Life Easier
  6. Preparing a Transparency Communication Plan
  7. You Know You Need an LMS — Now What?
  8. Why You Need ERM in Your Strategic Planning
  9. Enterprise Risk Management — Where to Start
  10. The Quickest Way to Understand Enterprise Risk Management (ERM)
  11. Just How Distracted Are Consumers?
  12. Omnichannel Delivery: Banking Based On Members
  13. Credit Unions Could Replace Predatory Lenders
  14. The Easiest Way to Deliver Content for Employee Development
  15. Are You Properly Rewarding Your CEO?
  16. Is Your Credit Union Supported by the Four Pillars of Digital Banking?
  17. Bankers associations’ opposition to mergers does a disservice to member banks and to consumers
  18. Credit Unions Have an Opportunity to Help Their Members Through Tax Season
  19. Three ways to up your social media game
  20. Keep content relevant, short, iterative and engaging
  21. The Quickest Way to Find the Right (and Safest) CMS
  22. What Borrowers Wished Credit Unions Knew
  23. The Process of Crafting a Relatable, Moving Brand Story
  24. Americans Trust Their Financial Institutions for Tax Advice
  25. Predict the Future of Mortgage Lending with Analytics
  26. Three Ways to Enhance Compensation Strategy for an Age-diverse Workforce
  27. Consumer Attitudes Toward Digital Advertising
  28. Achieving the Golden “Narrative Transport” in Brand Storytelling
  29. Remaining a Player in the New Home-Buying Experience
  30. Identify how chatbots will help you
  31. The Quest for a One-Stop Shop Financial App
  32. The Secret to Future-Proofing Your Organization
  33. Are You Ready to Adopt a Continuous Performance Management System?
  34. Leverage the Resources of Trusted Experts for Tax Season 2019
  35. You Might Already Have the Solution to Your Current Talent Competency Gap
  36. Conversational Commerce and the Rise of the Chatbot
  37. Do you need a new compensation strategy for multigenerational staff?
  38. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  39. 2 Big FinTech Goals for Credit Unions
  40. Preparing for Compensation Transparency
  41. 5 Things Credit Unions Can Learn from Cyber Attacks
  42. How Useful Are Member Personas for Credit Union Marketing Teams?
  43. Learning Management Systems: What Credit Unions Should Consider
  44. Become a Tax Resource for Members
  45. Do You Know Why Payday Loans Are Used so Much?
  46. 6 Factors for Choosing the Right ESS System
  47. Common Mistakes in Compliance
  48. What's Hot in Performance Management Technology
  49. Experience Company Growth and Discovery with Employee-Driven Communication
  50. Should You Still Be Concerned about ADA Website Compliance?
  51. Popular DDoS Mitigation Methods in 2019
  52. Prepare for integration
  53. Volunteer and Young Board Members Need Development
  54. What others are doing
  55. The Best Compliance Training with New Topics You Will Need
  56. Credit Union Compensation: Philosophy or Strategy?
  57. Americans' Lack of Financial Literacy Is an Opportunity for Credit Unions
  58. The Member Service Experience
  59. The Role of HR and Hiring Managers in the Candidate Experience
  60. The Planning Process - Improved
  61. Why HR Should Take Advantage of Employee Self Service
  62. 3 Succession Plans Your Credit Union Needs
  63. Don't Get Snagged on ADA Compliance Requirements
  64. Building a Website with the User in Mind
  65. Continuous Performance Management is Disrupting HR
  66. 7 Tax Changes Your Members Need to Know About
  67. Content Marketing: Well Worth the Effort
  68. Empowering Employees and HR with the Latest Technology
  69. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  70. People Analytics: Bringing HR and Data Together
  71. The Win-Win Results of Prize-Linked Savings for Credit Unions and Members
  72. Your Social Media Accounts Deserve Quality Content
  73. Anticipating Change with a Succession Plan
  74. Consumer Appetites in Mobile Innovation
  75. The Performance Management Conundrum: Structure vs. Creativity
  76. The Website Audit Your Credit Union Needs
  77. Shifts and Trends to Know About in E-Learning
  78. Prioritizing the Credit Union Employee Experience
  79. Are You Missing Out on the Power of Video?
  80. 3 Website Design Trends for 2019
  81. 5 Guideposts to Measure Your Brand Promise Against
  82. How to Identify What You Want in an ESS
  83. Optimizing Websites for Voice: What You Need to Know
  84. Content, Tools, and Channels to Capture Consumer Attention
  85. The Importance of Creating Quality Content
  86. Why You Should Invest in an Applicant Tracking System
  87. What Credit Unions Should Do with Ambiguous ADA Standards
  88. Serving the Underbanked and Millennials
  89. Is Your Executive Compensation Still Appealing?
  90. Making Sure You Have the Right Leaders in the Right Seats
  91. 4 Steps to Increased Social Media ROI
  92. Build Up Membership Through Supportive Savings Programs
  93. A Simple Way to Unify Your Marketing Efforts
  94. Selling Payments and Wealth Management Services
  95. The Credit Union Advantage for the Digital Customer
  96. Protect Your Credit Union with a Website Accessibility Response Plan
  97. Wanted: Apps for Clarification and Simplification
  98. Are Your Landing Pages up to Snuff?
  99. The Dream Team for Successful Online Customer Interactions
  100. Don't Undervalue Your Brand Promise
  101. Is Your CMS the Right Fit?
  102. Credit Unions Can Compete with Shadow Banks
  103. Don't Underestimate the Power of Financial Education
  104. Caution: Customers Don't Always Ask for What They Want
  105. 3 Brand Promises Credit Unions Can Learn From
  106. What the C-Suite Wants out of Social Media
  107. How Credit Unions Can Embrace Storytelling in Marketing
  108. Keeping Up with Digital Lending Convenience
  109. How Credit Unions Can Formalize the Branding Process
  110. How to Generate Content with Fewer Resources
  111. Underestimate the Onboarding Process at Your Peril
  112. Leveraging Social Media for Member Engagement
  113. Finding the Best Platform for HR Technology
  114. 3 Factors Impacting Credit Union Compensation Plans
  115. If Your Site Isn't Mobile Optimized, You're Losing Out

Related Trends

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

Industry insights
to your inbox!

Subscribe