How Technology Has Changed Mortgage Lending
Technology has touched almost every industry and mortgage lending is no different.
If you wanted a home loan 20 or more years ago, you would most likely have headed to a bank and gone through a lengthy application process with seemingly endless paperwork. Technology has changed the way people choose their mortgage lender and the home loan process overall, making it faster, more efficient and competitive for those looking to obtain a home loan.
Traditional mortgage lending was an in-person transaction. Whether you went to a bank or a mortgage company, the application process required time spent in-person, on the phone and engaging with representatives from the lender. Technology has changed this basic component for all types of lenders. While you can still go into a bank or mortgage lender in person, it is not necessary. Online applications, automation in underwriting and digital processes made possible by technology have created a booming online mortgage lending industry.
Growth of the Online Mortgage Lending Sector
Online mortgage lending has skyrocketed in the last 10 years, partly due to the 2008 bank and financial crisis. Banks were crippled in the economic downturn and they were no longer the leading source they once were, initiating more people to look for other sources of lending when purchasing a home. Online mortgage lending already existed but now technology helped make this industry even more enticing to consumers. Here are some ways technology improved online mortgage lending for home buyers.
Easier Access to Mortgage Information
Online mortgage lending puts the information consumers needed at their fingertips. Online mortgage lenders provided checklists and FAQs for consumers to help them navigate the home loan process. Consumers can look at several mortgage lenders and make informed decisions on their options but still have access to lending experts that can discuss their options.
Quicker Application Process
Technology has made everything quicker and easier when it comes to applying for pre-approval for a home loan. No length interviews or paper copies of documentation is needed to apply. In about a half-hour, an online application can be filled out completely and submitted to an online mortgage lender. Information is kept secure – Galaxy Lending Group uses a secure server where our customers can fill out an application online but not on our website. Technology delivers the application to the lender instantly and begins the process of approval almost immediately.
Technology has streamlined the documentation needed for home loan approvals. Digital copies can be emailed or uploaded without needing to use snail mail or in-person delivery. Technology has made it faster to retrieve all the needed proof for income, expenses, and assets from various entities during the home loan process.
One of the biggest changes technology has made in the mortgage industry is in underwriting home loans. This once was only completed by underwriters that needed to comb through all the documentation and determine whether applicants met the requirements. Underwriting is often automated with the use of technology – what could have taken weeks in the past can now be accomplished in hours or days, depending on the lender.
All these technology factors together have contributed to the growth of the online mortgage lending industry. In addition, those that are seeking home loans are often technology-driven millennials that prefer online interactions and expect speedy results. Banks must compete with online lending companies that are investing in technology to make them more enticing to tech-savvy consumers. Technology promises to continue improving the home loan process to make it faster, easier and simpler through online mortgage lending.
Future of Mortgage Lending
Technology is continuing to change the mortgage lending industry. Today the processes are streamlined by faster and easier communication between entities involved in approving the loan, but the entities are still separate. What if technology can link the systems between lenders, escrow/title companies and governing agencies to make the process fully digital? Artificial intelligence is also being explored for creating a more automated and predictive lending experience for consumers. Every step of the mortgage lending process can be made quicker and more secure, helping enhance the home loan process.
At Galaxy Lending Group, we have been using technology to give our customers access to a wide selection of mortgage options. As a mortgage group, we have brick and mortar offices where our customers can come for in-person consultation or application processes but we also offer online applications. We have harnessed the best capabilities of technology to make getting approved for a home loan quicker and easier but also offer personalized advice and attention for our customers.
If you are ready to explore the options available to obtain a new home loan or refinance your existing loan, apply online with Galaxy Lending Group. We offer the advantages of technology and expert sound advice combined to give you the best rates and customer experience.