Americans were asked if they’d prefer to apply for a loan in person or online. While admitting that they rely on online resources to do their mortgage homework, the majority of Americans still prefer to do so in front of a loan officer when applying. This is according to a recent survey done by the c (ABA).
Nearly 20,000 respondents took part in this new survey. It found out that 60 percent of Americans choose to transact and apply for a mortgage in person, sitting across the table with the lender. These individuals have identified the importance of doing their research before actually submitting the mortgage application. Much of this endeavor is done online.
Only 17 percent said they would prefer an online mortgage application. The rest of the 23 percent were undecided. Also, only 34 percent of the total number of respondents considered that they have “average knowledge” regarding the mortgage process.
Here are some of the pros and cons for both.
Doing it Online
Online mortgage applications eliminate the need for many paper files. Because the transaction is digital, the information exchange between the applicant and the lender is faster. The application is submitted, received and processed real-time.
Much of the work is done manually, contributing to the lengthy time the mortgage process takes. It takes about 50 days to complete a loan process. in today’s digital era, that seems like an eternity. Doing things online hastens the process. Because the application is sent real-time, mortgage lenders can also check for errors, problems, and discrepancies right immediately. The borrower can then work on it sooner.
Lack of Human Element
As human as we are, we need a fellow human being to reassure us that we are doing the right thing. The problem with applying online is the lack of an expert person to answer your questions should any confusion arise.
Also, a mortgage application is not just paperwork. Borrowers invest time, money and effort in this investment. The need for emotional and subjective interaction also takes a huge part in the experience.
Applying in the Presence of a Loan Officer
A mortgage loan application has many fields. It even has terminologies that can be confusing to borrowers. A loan officer who is present can help guide the applicant while filling out the form.
Learning About it First-hand
Sure, you’ve read a lot from your online research, but the assurance you get from an actual expert person makes you more confident about your decisions. This is one of the biggest investments you will be making in your life, you just have to be extra sure you are doing the right thing.
It may be Time Consuming
Unlike an online transaction where you can do it anytime, anywhere, a loan officer can’t be in two places at the same time. You would need to set a schedule a few days in advance.
We are sure a loan officer will be willing to meet up with you at your most convenient time. But if you’re only free past 8 in the evening, it’d be difficult to set up a meeting with them.
Last minute or duplicate document requests are just uncool. While online files provide instant access to both ends, paper versions may be misplaced or what not. Have you ever heard yourself say, “I’m sure I’ve submitted these files before.” Additional document requests add more time in the loan process which is already lengthy as it is.
Mortgage institutions have designed many interaction options you can choose from. The best thing to do is to make the best out of both worlds. Relationship officers, nowadays, can be accessed through e-mail, a call, or even a few taps on your mobile. You can also choose to meet them up personally if you have some time to spare.