Ashley LaBombard, Marketing Associate at Sharetec, alabombard@sharetec.com
Buying a home can be tedious, stressful, and time-consuming, especially with today’s unpredictable housing market that often favors the sellers. The Fed has signaled that rate cuts may be on their way toward the end of 2024, and if so, there could be an influx of new homebuyers.
Despite the number of would-be homebuyers in the market, you want to ensure that your members are applying for mortgages through your credit union and not a competitor. Making your credit union’s mortgage application process easier for your members is one differentiator that can boost the number of members applying for mortgages through your CU. Here are four ways you simplify and streamline your mortgage application process:
1. Make it Digital
If your CU isn’t offering a digital mortgage application yet, it’s time to rethink your application strategy! Not offering a digital form could be the deciding factor for a potential new member.
According to the National Association of Realtors, the median age of first-time home buyers is 35, and people in this age range (millennials) tend to prefer digital applications over paper. That being said, Gen-Zers are beginning to purchase homes, too, and they are even less likely to fill out a paper mortgage application.
2. Make it Short(er)
No one is asking you to cut corners, but reviewing your current content is important to determine how much extra “fluff” is taking away from the task at hand.
According to recent form abandonment statistics, 27% of applicants will abandon a form based upon length. Make sure your instructions are direct and to the point, remove duplicate material, and only ask for required information.
3. Make it Easy (as possible)
Look at your current mortgage application form and determine how user-friendly it is. Are the steps in a cohesive order? Does each step include short, simple instructions? Consider a rewrite if your content includes long, drawn-out descriptions or unnecessarily big words!
Other steps you can take to make the mortgage application process easier include:
- Break steps into “chunks” (basic information, funding, needed documentation, etc.) with a progress bar at the top of each page. This will help users keep track of how much of the form is completed and reduce the risk of becoming overwhelmed.
- Optimize for mobile. Recent studies suggest that 45% of form data is submitted from a mobile device. As mentioned earlier, the median age of current homebuyers is 35 – so that percentage is likely even higher for millennials.
- Improve Readability. Make sure your font, font color, and background color make the form easy to read. Also, ensure your form is ADA-compliant by scanning it with an ADA Compliance Checker.
4. Provide Support
Make sure your mortgage application includes a link or other redirection to Frequently Asked Questions and Answers. Also, provide a variety of options for contacting your credit union for additional support, including chatbots, appointment scheduling, phone numbers, and emails.
Every member is unique and will, therefore, have different application and communication preferences. Some members will want to figure out the process independently, while others would prefer sitting with a member service representative at a branch. As a modern and thriving financial institution, providing every option for your membership is essential!
