Is Your Online 1003 Loan Application Costing You Business?
Ellie Mae’s 2019 Borrower Insights Survey revealed several growing trends in borrower’s attitudes towards digital mortgage offerings. Some of these shifts have been discussed anecdotally for years now, but the survey data reinforces these conclusions and provides a roadmap for where the industry should focus their digitization efforts.
This is incredibly important because now, more than ever, mortgage borrowers are beginning their search for a lender online and making decisions based upon the technologies that the lender uses to enhance the mortgage experience.
According to the survey, 43% of the borrowers indicated that they found their lender with a simple online search and another 20% reported that an advertisement led them to their preferred choice.
And there has also been a steady increase in borrower’s appetites for self-service digital mortgage processes, as evidenced by the mind-blowing 50% of recent borrowers who stated that they chose their lender specifically because they had an online application or portal, it is incredibly important for loan originators to create a fantastic first impression online if they want to maximize their potential to capture deals.
This means having a simple yet elegant method for prospects to begin or submit a loan application while avoiding the pitfalls that cause them to flee to another lender is crucial.
Why Do Borrowers Abandon Online Loan Applications?
Ellie Mae’s survey revealed a diverse set of responses to this question, including answers such as “I was missing required information”, and “It was too difficult”.
But the top two reasons given in the survey for why borrowers abandon online loan applications are that it takes too long and that borrowers get distracted. These responses paint a dire picture of the process that many borrowers endure when attempting to apply for a loan online.
Unfortunately, many lenders that offer an online loan application still utilize older technology that is usually nothing more than the full 1003 on their website. For most borrowers, there will be a number of fields that won’t apply to their situation and forcing them to navigate that for themselves is an inefficient and poor experience.
With how digitally savvy mortgage borrowers have become, these antiquated systems are doing more to ward off prospects rather than functioning as the business capturing device they were intended to be.
How Floify’s Online 1003 Provides a Solution
Floify’s online loan application solves many of the issues that cause borrower frustration by employing an “interview-style” approach to the 1003 and augmenting the questionnaire with visual cues to make navigation a breeze.
This method of information gathering has distinct advantages in speed, efficiency, and perceived difficulty as borrowers are only be required to respond to portions of the application that their own responses have shown to be necessary.
Furthermore, because Floify’s version of the online loan application offers a ton of customizability for lenders in how it is deployed, originators can choose to exclude questions and effectively create their own short-form to give another boost to submission rates. Leveraging the system’s flexible new-prospect workflows gives lenders choice in how they collect the remaining information necessary to complete the 1003 and move to the next phase of the origination process.
If your online loan application is lacking in digital functionality, or if you’re still searching for the perfect 1003 to compliment your website, give Floify a test drive (for free) to experience the difference a modern solution can make for your business.