In an age where smartphones redefine the way news is spread or business is made, where supercomputers are catapulting humans’ reach into deep space, and where the internet is rapidly becoming the medium of progress, the mortgage industry is noticeably left behind. Majority of its processes still rely on manual operations and only a few have seemed to embrace the power of technology.
When integrated into its dynamics, how well could tech revolutionize the whole housing industry? Let’s shed light on the possibilities.
Enhancing Borrower Experience
One of the most time-consuming aspects of getting a mortgageis completing the documents, filling them out, and providing supporting files (e.g. income data, tax returns, credit report), not to mention the whole time spent in verification and processing. Through digitization, manual input could be replaced by online click-through forms, which is easily redirected to the lender once done. Through the power of the web and the availability of databases, lenders can easily cross-check information for easy, real time processing.
Some lenders are already practicing online servicing, which makes it faster for applicants to apply and be approved. Using this new-age method, gone will be the days of going over hundreds of paper stacks, making mortgage application a less stressful exercise for both lender and borrower.
The availability of appsthat allow borrowers to monitor their mortgage applications is changing the way lending is done. Borrowers can now get real-time updates of their application without the need to contact their lenders from time to time. This shortens lending time and allows lenders to focus more on other important lending aspects than continually keeping their clients updated of the status of their applications.
Reducing Processing Time
Easy cross-checking and verifications made possible by the amplified network of government agency databases and mortgagors can significantly cut down mortgage processing time. If a potential borrower can shop, apply, and access real estate services online without the need for physical transactions, that would save not just time but also other important human resources.
Information dissemination is now easier, thanks to the reach of social media and other web channels. Requirements can be scanned and forwarded via the internet. If you’re planning to sell your home, you can contact an agent online to put up your house on web listings. If you want to know the process of refinancing, there are various mortgage blogs that can provide you updated tips. If you want to know if you are eligible for a government-insured home loan, you can easily Google it up. The possibilities are at your fingertips.
Cutting down expenses
Automation is the future. Software is becoming more and more efficient at doing what has been yesterday’s manual work. Artificial intelligence is rapidly becoming an essential part of the labor force. It cuts down human labor (and errors), hence also making certain services and products less expensive, allowing lenders to pass these savings to borrowers.
When current resources are optimized to deliver, tech could do wonders to the whole housing industry. But are the stakeholders ready to take a leap?Click to See the Latest Mortgage Rates»