Homebuyers Swiping Right: San Francisco-Area Residents More Comfortable With a Digital Mortgage Than Online Dating

April 18, 2018 at 9:00 AM Eastern

San Francisco consumers have been longing for more digital solutions in the mortgage space, according to the latest Bank of America Homebuyer Insights Report. More than one-third of local residents are comfortable applying for a mortgage digitally, compared to approximately one in five who say the same about online dating.

The report, a study exploring homebuying perceptions and behaviors among adult consumers, also finds that 52 percent of respondents would apply or have already applied for a mortgage via mobile or online.

San Francisco-specific highlights from the report include:

For San Franciscans, technology and homebuying are becoming inseparable

  • Nearly all first-time buyers in San Francisco feel technology will play a role during every stage of homebuying, including researching (100 percent), getting a mortgage (96 percent), and negotiating and buying (95 percent).
  • Perhaps this is because local residents are most likely to seek a homebuying experience that is efficient (64 percent), simple (59 percent) and personalized (48 percent).

“Instagrammable” homes giving San Francisco residents major FOMO

  • First-time buyers in San Francisco are more likely to share their home purchase (37 percent) on social media than a new job (35 percent) or car (22 percent).
  • When seeing others post pictures of their homes on social media, local first-time buyers feel:
    • If they can buy a home, why can’t I? (32 percent).
    • That it’s time to grow up and buy a home (21 percent).
    • Jealous of the home others have (20 percent).
    •  Fear that they are missing out by not owning a home (20 percent).

NextGen homebuying is here

  • Many local residents are already comfortable using emerging technologies throughout the homebuying process, specifically using a real estate app (72 percent), taking a video tour of a home (55 percent) and attending an open house using virtual reality (42 percent).
  • In looking ahead to the next 10 years, San Franciscans believe:
    • Smart home and energy-efficient features will be standard in new construction (68 percent).
    • Mortgage applications will be entirely paperless (50 percent).
    • Open houses will only be through virtual reality (21 percent).
    • All appraisals will be done via drones (5 percent).

The homebuying experience transformed

The release of the survey follows the recent introduction of Bank of America’s Digital Mortgage Experience™, a simple, guided solution through which clients can complete the mortgage application directly within the bank’s mobile banking app or online at bankofamerica.com. 

Beyond the flexibility to apply for a mortgage anywhere and on their own time, the end-to-end experience provides clients full customization and control, including the ability to choose the monthly payment, closing costs and loan terms that work best for them. At the same time, users can easily connect with a lending specialist, reflecting the blend of technology and personal attention clients are looking for today.

Bank of America’s Digital Banking Leadership

Bank of America’s digital banking platform is an evolving source of increased customer engagement and satisfaction serving nearly 36 million digital customers, including nearly 25 million active mobile users. Its award-winning mobile app was the first to receive J.D. Power’s certification for “An Outstanding Mobile Banking Customer Experience.” During 2017, mobile banking customers logged into their accounts 4.6 billion times, or approximately 190 times per user, and deposited 123 million checks via mobile.

About the Bank of America Homebuyers Insights Report

Convergys Analytics conducted an online survey on behalf of Bank of America between January 16 and February 2, 2018. Convergys surveyed a national sample of 2,000 adults age 18+ who currently own a home or plan to in the future. In addition, an augment was conducted to reach 300 adults in seven local markets: Austin, Boston, Charlotte, Dallas, Nashville, Phoenix, and San Francisco. The margin of error for the national quota is +/- 2.6 percent, and the margin of error for the oversampled markets is approximately +/- 5.8 percent, with each reported at a 95 percent confidence level.

Bank of America

Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 47 million consumer and small business relationships with approximately 4,400 retail financial centers, approximately 16,000 ATMs, and award-winning digital banking with approximately 36 million active users, including approximately 25 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

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Reporters May Contact:
Susan Atran, Bank of America
Phone: 1.646.743.0791