There’s something new out there in the mortgage world, and you might want to pay attention.
Consumers finally have the option to apply for a mortgage completely online, rather than deal with all of the burdensome paperwork involved in a traditional mortgage process.
Consumers are spending a lot of time online, from shopping to filing taxes, and even applying for jobs. Plenty of real estate agents themselves are going paperless, as well, using digital signing software for entire transactions, from listing to closing.
The speed and ease of doing everything in the digital world have certainly raised the expectations for all consumer transactions.
What is a Digital Mortgage?
A digital mortgage is more than just filling out an online application. This aspect isn’t new; it’s been around for years. A truly digital mortgage maximizes automation throughout the entire process. Digital mortgages vary, depending on the institution, but more often than not, it’s about self-service.
Consumers are able to upload important financial documents and sign loan documents electronically, from anywhere and any time that is convenient for them. Everything is instantly transferred to the lender’s loan origination system. This makes the process smooth, quick, and easy for consumers and reduces time and costs for the lender.
Getting Approved in a Flash
Unlike the traditional mortgage process, that may take weeks to approve or deny a consumer’s loan, a true digital mortgage process can cut that down to a few days, or even a few minutes. That’s good news for consumers.
The speed and convenience of a digital mortgage mean they can purchase and move into a new home in record time, in as little as two weeks in some cases.
While some lenders have already hopped on the digital train, the rest of the mortgage industry seems to also be moving forward with utilizing digital mortgage solutions. Offering digital mortgages will become essential to any lender, as they focus on improving customer experience, but it will also improve operational efficiencies, lower costs, and increase profitability for the lender.
Of course, the option to go the traditional route is still available for homebuyers and refinancers that aren’t quite on board with the fully automated process. Even institutions that are offering digital mortgages are likely to still offer the experience of sitting down with a mortgage lender to do the loan process.