The Role of Technology in Millennial Mortgage Purchases – The Latest Digital Transformation Trends | Cloud News

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Did you know that millennials have made up the largest proportion of home buyers in the United States over the past six years? According to a 2020 NAR Home Buyer and Seller Generational Trends survey, millennials made up 38% of all home buyers in the United States. Perhaps this is partly due to technology that millennials have that make finding mortgages and ideal real estate easier than ever before.

Internet technology has changed the way millennials buy mortgages

Millennials use digital tools to their advantage to calculate mortgage rates and manage their finances. For example, today you can find an online mortgage calculator in seconds to determine how many of your monthly payments are likely to be on properties of varying value based on your income and financial situation. Gone are the days of having to make an appointment with a mortgage lender in person, just to get a rough estimate of how much a mortgage might cost. Millennials can make calculations very quickly these days. This would not have been possible without Internet technologies.

But the biggest thing that has influenced the purchase of millennial mortgages on the internet is comparison sites. As with mortgage calculators, comparisons are now quick and easy. mortgage rates onlineso it should come as no surprise that online comparison sites are the first place millennials go to buy the best mortgage.

Technology Accelerated Mortgage Application Process

Technology isn’t just changing the way people look for mortgages. It also changes the way people apply for and get approved for a mortgage loan. In recent years, new mortgage lenders have appeared on the network, making it easier and faster than ever before to get a loan; and millennials have taken full advantage of this. Some mobile services even allow potential borrowers to apply for a mortgage within minutes.

Processes can be speeded up with things like automation technology. For example, checking things like income and employment is done automatically, and things like underwriting can start as soon as a person fills out an application. Some online mortgage lenders even allow clients log into your bank accounts through their platforms, thus speeding up the process even more.

Buying a home gets easier with technology

Technology has certainly helped speed up the mortgage comparison and application processes and make them much easier, but technology has also made the real estate buying process much easier. In turn, this means millennials are more likely to apply for mortgages. Decades ago, finding the perfect home was more time consuming than exciting. Without the Internet, you would have to visit real estate agents and wait for property photos to arrive in the mail. Today, you can not only see dozens of potential properties in seconds on online real estate platforms, but also a virtual reality tours to the objects of interest to you.

Indeed, VR tours are one factor that has been critical for millennials deciding to take out a mortgage. According to a survey by Coldwell Banker Real Estate, 77% of those surveyed said they would like to take a virtual tour of their homes before deciding to visit properties, and 84% said they would like to watch videos before visiting potential properties. Real estate companies are revolutionizing the way they sell homes over the Internet. Many are adopting social media tools like hosting open events in real time with tools like Facebook Live.

People of all ages are starting to use technology when buying mortgages and homes, but it was millennials who paved the way for the emerging climate of mortgage buying.



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