On-line vs Phone applications, what works best?

I just saw a report that 48% of online mortgage loan applications don’t get completed.

Holy “Losing a bunch of deals” Batman…

I’m often asked, “is it better to send the lead to a website or just take the mortgage loan application over the phone?”

And I get it, we’re in the digital age – online seems like the way to go. But knowing that about 48% of all those online applications, well, they don’t cross the finish line.

Now, I’ve been in the game long enough to know that we can’t ignore numbers like that. So, you gotta ask yourself, why are folks dropping out of the race halfway through?

A lot of it comes down to that good ol’ human connection.

Some folks appreciate a voice on the other end of the line, someone who can answer their questions right then and there, someone who can nudge them towards the ‘submit’ button.

The trust, the rapport, all of that jazz – that’s crucial in this mortgage rodeo.

And look, I’m not blind to the fact that online’s got its perks.

It’s often more efficient when it comes to data entry, but with nearly half of them not getting completed, you gotta ask yourself, is it really more efficient overall?

One big thing I can tell you, from all my years in the business, is that relationships are king.

That phone call, that personal touch, it lets you really dig into what the client needs and give them advice that hits the bullseye.
And listen, I’m not saying to slam the door on online applications. Heck no! There are plenty of tech-savvy cats out there who would rather go online at 2 a.m. than pick up a phone. But given the abandonment rate, maybe it’s time to consider a phone-first approach.

My own personal approach is to get them on the phone, using the phone number the referring agent or past database client gives me, and tell them “…I can take the application one of two ways, I can give you a website to go to so you can fill it out on-line, or what most people do, I can take the application right here over the phone in just a few minutes.  Which is best for you?”