We recently conducted a national survey of homeowners to gauge how they perceive the home closing process. And the findings were clear: borrowers are frustrated with the time it takes to close a real estate transaction and are open to tech solutions to help solve the problem.
Although the shift to digital transactions has existed for years, it became a necessity to get business done in 2020. Homeowners have now seen that the process can be simplified via technology, and will continue to expect more convenient, digital options going forward.
This appetite for a better closing experience is particularly exciting for the Spruce team, because it’s directly in line with what we’re working on every day. From the beginning, Spruce’s mission–to build the one click checkout for real estate transactions–has been about making real estate transactions fast, frictionless, and secure for all parties. This means building technology to make our lender and real estate partners more efficient, so that they can provide a better customer experience for homeowners.
The responses also highlight the immense opportunity to increase borrower satisfaction through technology solutions in real estate transactions. Over the last year, the time-to-close was about 47 days. On average, lenders who have opted to partner with Spruce close 25% faster–resulting in more satisfied borrowers and a better overall homebuying experience.
“In 2020, we saw origination times tick back up to levels significantly higher than last year,” said Patrick Burns, CEO and co-founder of Spruce. “Lenders need to ensure they’re continuing to apply technology across their origination workflow to cater to what borrowers really care about–time-to-close being one of the most pertinent.”
With more than 80% of survey respondents agreeing that technology could make home buying easier, the lender landscape is perfectly positioned for digitization. Interest rates are expected to remain low throughout 2021, and the continued demand for mortgages is likely to remain high. This environment will bring more competition, and we’re excited to help our partners deliver a level of transparency, speed, and predictability that will benefit both their continued growth and borrower satisfaction alike.
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