The impact of technology can be felt in most aspects of our lives, from schools to homes and offices, and the home buying business is no exception. New technologies are now changing every step of the online mortgage application process.
For most players in the mortgage industry, technology is a welcomed change. This is evident as more lenders and borrowers continue to embrace digital lending. But how exactly is technology impacting the mortgage process?
Easier Access to Funding
The mortgage process looks a lot more different than it did several years ago. For most borrowers, one of the biggest challenges in the whole mortgage application process was access to credible lenders. However, with the continuous incorporation of technology and its impact on the mortgage process of buying and financing your next home, securing a mortgage has become more straightforward.
This explains why most borrowers prefer to work with credible online lenders like Fixed Rate Realty. At Fixed Rate Realty, we offer multiple digital tools to improve the borrowing experience, enhancing customer satisfaction.
Automation of Financial Data Handling
The traditional mortgage process was marred with steps that required homebuyers to manually track down sensitive documents, scan and send them to the lenders for assessment. For this reason, there was a significant concern about the documents’ security.
Innovative technologies impacted the mortgage process by improving financial software that has considerably reduced the time and effort required to complete the application process. In online mortgage applications, borrowers and lenders can securely upload and share the necessary documentation electronically. Lenders also use financial and data management systems to improve accuracy and get rid of manual tasks.
Improved Valuation and Verification
Property valuations and borrower verification are an integral part of the mortgage process. It is paramount for lenders to evaluate and verify all the borrowers’ information and accurately value their properties. The impact technology has made on the mortgage process has caused automated verification to be incorporated more often and has shown to be more efficient than the traditional drive-by appraisals and manual data verification that contributed to endless operational errors.
The beauty of digital verification during the online mortgage application process is that it enables the underwriters to identify eligible borrowers from the onset, hence saving borrowers the agony of waiting for weeks or even months without knowing if they would qualify for the mortgage. This way, potential homeowners can always explore more lending options to find the most suitable lenders for their mortgage needs.
Hybrid and All-Online Closings
The closing process has for long been a dreaded part of the mortgage process. Although the closing section varies with the situation, borrowers are increasingly opting for a hybrid model. Another popular digital option among borrowers is virtual closing which has incorporated the impact technology has made on the mortgage process.
When closing a mortgage deal virtually, all the notarization is done via a webcam. Prospective homeowners sign all the documents electronically. However, in a hybrid model, some paperwork is reserved for in-person notarization, and the rest is done electronically.
Need Help Finding a Competitive Mortgage in Colorado? Contact us Now
Undoubtedly, technology has tremendously impacted the mortgage application process globally. At Fixed Rate Realty, we have adopted the latest technologies to enable us to connect you to the best lenders in the market as you pursue your dream home. Please contact us online, call us directly at 303-950-2552 to schedule a consultation, or use the online mortgage application.