The mortgage lending industry has always been at a boom. It is now even powered by technology and potential homebuyers now search online as they look for reputable mortgage lenders. Despite more people looking forward to digital means, there are less than 8% of lenders offering an absolute digital mortgage experience.
Technology that reinventing mortgage industry
Instead, borrowers are forced with paper documentation. It is an evergreen industry that has and can benefit even more utilizing technological developments. Nevertheless, here are some ways in which technology has reinvented the mortgage industry:
1. Better borrower experience
The mortgage industry is driven by inherent documentation with the heavy bulk of files that can even exceed hundreds of pages. This is burdensome for applicants. This does nothing but adds extra time and cost making it an inefficient process.
The process is now becoming more digitized. The process is simplified and streamlined for homebuyers using specialized software which has even made life easier for lenders. Lenders can easily confirm the accuracy of documents and speed up the entire reviewing process.
2. Better transparency
Borrowers do not know about the lender’s internal systems which makes it difficult for most of the borrowers to trust their lenders. Fortunately, prospective homebuyers now have access to portals allowing them to see information about the loans in real-time as much as the lender. This enhances transparency. It enables both parties to work in conjunction and interact in a co-operative manner. It sheds the pressure on the lenders and provides the borrower peace of mind.
3. Painless mortgage process
Even though there are some lenders such as Propillo currently offering convenient mortgage process but generally the procedure is overwhelming. The complete loan process can last 50 days with conventional techniques.
Technology has paralleled the mortgage process with modern stands providing borrowers a better experience. Applicants are now able to navigate through a self-guided experience getting access to real-time assistance from experienced mortgage lenders. It has made the whole process highly convenient and painless.
4. Digital compliance
The federal regulations have now required lenders to comply with responsible lending practices. Technology has played an important role in assisting lenders to adhere to regulations and comply with the laws without adversely impacting borrower’s experience.
5. Big-time savings
It costs about 6,000 pounds for a lender to complete each mortgage. A large portion of that cost goes towards employee payments to complete manual tasks such as translation of documents. These inefficiencies then cost the borrower in the form of additional fees and other costs.
Taking benefit of modern technology reduces the costs considerably saving money for the borrower and the lender. It minimizes errors and enhances the entire process.
Technological developments have impacted the mortgage industry for its better. There is already a transformation in the process. Even though it is mere speculation, digitization will continue to improve the industry in multiple ways. With better technology, the mortgage process can get better, faster, easier and more efficient.