How to Coach Buyers Who Are Curious About Online Mortgage Lenders

While people will buy just about anything online these days, some are reluctant to go digital when shopping for a mortgage. That’s natural — getting a mortgage is a huge decision, online lenders are still fairly new, and the status quo doesn’t change overnight. Once upon a time, consumers were even skeptical of a young e-commerce company called Amazon.

However, the tide may be turning. Over time, more and more of the entire real estate journey is happening online. For example, in 2023, a third of mortgage buyers found their lender online, which marks a 10 percentage point increase from 2022. As home shoppers get more comfortable using digital tools to search for a mortgage, their attitudes toward online lenders may start to evolve as well.

Let’s say a buyer comes to you already pre-approved from an online lender, or they see a great rate, or are just curious about the pros and cons of getting a mortgage online. Here’s how to help them navigate three key topics related to the experience.

1. Local knowledge

For agents, being local is a must; for loan officers, not necessarily. Technology has leveled the playing field for people to access relevant data from anywhere. When a buyer starts their financing journey, you’re looking to collaborate closely with someone you can trust to close the transaction, regardless of where the loan officer lives. 

To the buyer, local expertise is more important than local proximity. Erika Kerry, a Zillow Home Loans loan officer based out of California, establishes credibility with buyers by walking them through a quick example in their market. She asks them to share a property or two to get things started. Kerry crunches the numbers, then reconnects with the buyer.

“On a call, we go through it all so understand what it looks like to purchase a home,” Kerry says. “We cover the property taxes, estimated homeowners insurance, if there are HOA fees, what the closing costs look like. This step is invaluable because it sets up the rest of the relationship. We use our massive resources to bring in the local.”

2. Customer service

When it comes to customer service, online lenders may not always have the best reputation. Too many cooks in the kitchen, sparse updates once a client is under contract, etc. Most mortgage buyers rate getting the lowest rate as one of their top considerations when choosing a lender, but finding a lender that communicates promptly is also a key factor. Sometimes, a buyer just needs to talk to someone on the phone. 

“We understand how important it is to have that main point of contact,” Kerry says. “That’s me. I’m not going anywhere. I’m going to text you. You see my contact information, and you can reach me just about any time.” 

Subpar customer service remains a fair criticism for some online lenders (and some local lenders as well). So if buyers are unsure where to go, see if they’re open to shopping around. Zillow research found that 37% of recent buyers only contacted one lender. If a client especially values customer service, there’s room to explore more options and talk to more people before jumping to a decision.

3. Digital platforms

Depending on your buyer’s comfort level with technology, an online lender may bring much-needed convenience. For other clients, it could make financing sound more complicated than it already is. 

The reality is that digital tools have become table stakes in the lending process, even for basic tasks like e-signatures. Online lenders may have an advantage here given their expertise in developing digital platforms for consumers. Technology has already removed a lot of friction and stress from the lending process – even in unexpected ways. For example, internal Zillow research found that buyers like to use chatbots and other digital tools to do their own mortgage research so they don’t have to constantly pepper a human with basic questions. 

Logistically, much of the digital demand on clients comes down to uploading documents to a portal. If clients need additional tech support for whatever reason, their loan officer is always available for assistance. 

Because the home buying process can be overwhelming, Kerry thinks it’s vital to check in and assure clients along the way. And even if support is needed, there’s often an easy solution close at hand. She’s told clients to take a screenshot on their phone or send documents over email to simplify the process. 

“Sometimes it’s good to slow down and talk it through.” Kerry says. “We can stay on the phone and guide them.”

Have questions? Send our team an email at agentinquiries@zillowhomeloans.com