Two-thirds of consumers are interested in a fully digital mortgage process.
And most homebuyers said they would prefer if the entire mortgage process, from first applying to closing, would take only a month. The median time period for a mortgage is currently 35 days. The majority of recent homebuyers said that getting all the financial information together is the hardest part of getting a mortgage.
Fannie Mae also found that if the mortgage process can’t be completely digitized, consumers want the process to be easier. Twenty-seven percent of homebuyers said they want less paperwork when applying for a mortgage. According to one report, the average mortgage application is 500 pages. The Welcome Home survey recently found that first-time buyers in Pennsylvania labeled the paperwork as one of the most stressful parts of buying a home.
Twenty percent of those in the Fannie Mae study want it to be easier to compare lenders and 16 percent want less back-and-forth conversation with their lender.
Despite heavy favoring to move the entire mortgage process online, there are some features that most homebuyers prefer to do in-person. For example, 65 percent said they prefer a mortgage lender to explain their terms and options in person, and 58 percent said they want to review their final documents in person. Signing the final loan documents is also something most consumers prefer to do in person, according to more than half.
However, some homebuyers think the process can be more streamlined if some steps are done online. Nearly three-quarters reported they would prefer to fill out the application online, while 70 percent said they would rather submit documents online. More than two-thirds said they would prefer to get pre-qualified or pre-approved online.
Younger, female and higher-income buyers are more likely to prefer a completely digital mortgage application process.