Survey reveals younger homebuyers favour balance of AI and human support in mortgage process

A recent survey has highlighted the complex relationship between technology and human interaction in the mortgage application process, particularly as it pertains to younger generations. Conducted by mortgage technology firm Cloudvirga, the study involved over 1,000 participants from the millennial and Generation Z demographics, many of whom are first-time homebuyers under the age of 40.

The survey explored their preferences regarding the integration of artificial intelligence (AI) in mortgage applications, at a time when AI technology is increasingly being adopted in the industry.

Despite the growing presence of AI, the survey revealed that a significant portion of these homebuyers remain hesitant to depend solely on an entirely automated process. 

Notably, 60% of respondents expressed that they would consider switching lenders if AI played a major role in the application process. This suggests that while AI offers potential advantages in terms of speed and efficiency, there is still a strong preference for human involvement during key stages of securing a mortgage.

Maria Moskver, CEO of Cloudvirga, underscored the findings, emphasising the need for a balanced approach in adopting new technologies. She noted that while there is an interest in automated platforms and user-friendly digital interfaces, homebuyers continue to value the guidance and assurance provided by loan officers. 

According to the study, about 58% of participants still relied on loan officers to navigate the complexities of mortgage applications, although this percentage may decline as digital tools become more universally integrated.

The survey further highlights the increasing demand for technological efficiency within the mortgage sector. A notable 63% of first-time homebuyers surveyed expressed a desire for a more enhanced digital experience, with nearly 77% favouring a fully digital process. 

These preferences align with the expectations of tech-savvy consumers who are accustomed to high digital standards in other areas of their lives.

Several digital tools have already proven beneficial in streamlining the loan application process, providing homebuyers with real-time updates, facilitating automated document submissions, and offering e-signature options. Of these tools, digital document submission features were particularly valued, with 91% of respondents utilising them for updating necessary documents.

As the mortgage industry increasingly incorporates digital solutions, the question remains how lenders will balance the integration of AI with the demand for human interaction. Currently, some 30% of lenders have adopted or are experimenting with AI software, a figure that Fannie Mae projects could rise to 55% by 2025. 

The survey results from Cloudvirga suggest that successful lenders will likely be those that find the optimal mix of advanced technology and personal support to meet the evolving preferences of millennial and Gen Z homebuyers.