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“Alexa, help me find a great mortgage rate.”
It’s hard to believe that just a few years ago, we had to call several banks and spend hours on hold to get the same information that our electronic host can find in seconds. Advances in technology over the past couple of decades have made virtually everything in our lives more accessible and that includes the mortgage process. Keep reading to find out how the lending landscape has evolved with the introduction of new tech from a panel of professionals.
Table of Contents
Faster, Easier, Better
Technology makes the mortgage process faster, easier, and often better overall for borrowers. It allows people to go online and shop around for the best deals and offers that are suited to their unique needs without requiring much effort. Once they’ve found an option that looks right for them, they can quickly go through the pre-approval process without having to fill out extensive paperwork by hand. Even filling out an application online takes way less time than filling out a paper application and mailing it or hand-delivering it to the lender. The amount of time it takes to get approved is significantly shortened as well.
Offers Based on Profile Data
The short answer to this question is “big data.” Mortgage companies have more information than ever about the kind of financial profile that makes a good mortgage investment, the value of properties, and their competitors’ offerings. They’re using this information to more carefully calibrate their mortgage offerings to what customers can afford.
Increased Security and Accessibility
Obtaining a mortgage requires a significant amount of documentation and time for approval and processing. In today’s modern world, technology has made things easier in the mortgage industry. Due to technological advancements, online applications are now possible. The procedure is straightforward and can be completed in hours. From its time-consuming paperwork, it has evolved into a digital version in which information is more secure and accessible.
Buyers Have Better Options with Competitive Lenders
Even having mortgage approval systems so accessible has changed the mortgage process. People are allowed to quickly submit their info to several sites to see if they’ve been accepted, what the interest rates are, and more. It’s opened up a competitive market that allows mortgage providers to win over potential purchasers and it gives buyers a chance to test the market.
It’s all about speed, efficiency, and being able to instantly understand what your options are. And that’s all because of new tech!
Secure Mortgage Process for Borrowers and Lenders
Technology has a huge effect on the mortgage process. For one, it has allowed for increased transparency in the market, as borrowers can now more easily access information about interest rates and loan products.
Technology has also allowed for the development of new mortgage products, such as adjustable-rate mortgages and interest-only loans. And finally, technology has allowed lenders to more efficiently assess a borrower’s creditworthiness and risk profile, which has helped to make the mortgage process more secure for both borrowers and lenders alike.
Game-Changing Machine Learning and AI
Technology has completely changed how mortgage marketing is carried out nowadays, as with the emergence of machine learning and AI technology, most loan officers are now able to effectively run ads that cater to your exact needs. Moreover, you are now able to go on the internet and search for lenders that fit your criteria, which has vastly improved the consumer’s buying power.
Furthermore, the mortgage application process has also been massively changed by tech, as through online applications. Borrowers are now able to be approved for a loan without even having to talk to a loan officer or even visit a physical location. Also, since any supporting documents can be uploaded, processed, and verified digitally, the consumer now has more say in the loan process than ever.
Plus, with the emergence of AI and API integrations, these options have now been able to automate what has historically been a paper and labor‑intensive process, while also ensuring data accuracy and consistency in the process
Efficient and Effective Market
Technology has put a lot more information in the hands of borrowers and lenders alike when it comes to mortgages. Lenders are going to know much more about the creditworthiness of buyers and the true value of the properties in question, and buyers are going to have a much better chance to shop around for the best mortgage rates they can find. All of this is making the mortgage market more efficient and effective for everyone involved.
Ann Martin
Ann Martin, Director of Operations of CreditDonkey.
Better Data, Better Mortgage
The biggest impact of technology on the mortgage process right now is on the financial side. Lenders have access to more data than ever before on a buyer’s financial history, the market value of homes, and the mortgage market as a whole, meaning that they are much more able to accurately predict their profits and losses on any mortgage proposition.
From a buyer’s perspective, it’s becoming harder and harder to find a great deal on a mortgage. That said, there are benefits for the buyer as well since appraisals are getting more accurate and nobody wants to find themselves in the position of being stuck with a mortgage they can’t truly afford.
