October 9th, 2018

If you look around the mortgage lending industry today, you probably started to notice that the homebuying process is rapidly improving with digital advancements. Compared to ten years ago, the loan process was slow, inefficient, and overall complicated. As the mortgage industry welcomes more and more digital technology, those formerly drawn-out processes have become obsolete as they can be finalized over a few swipes or keystrokes. With all of this advancement in mortgage technology, it probably comes as no surprise why abandonment rates used to be so high. You might even wonder how anyone used to get work done.

The Old Way

In the old days, borrowers would meet with a mortgage company’s loan officer or representative face to face. The discussion would usually start with asking the borrower about all of their finances. A borrower would also have to fill out a mortgage application with pen and paper. They’d also be responsible for providing all sorts of physical documents. This includes personal information, bank statements, W2 forms, pay stubs, and so on. If a prospective homebuyer didn’t have this all on-hand, then they’d have to either fax, mail, or drive it to the office themselves. If the loan officer required additional information or if documents were lost in the mail, then everything would start over again. Borrowers would have to go back and forth several times before proceeding to the next stage in the loan process.

After all of this, it would take weeks or even months to figure out the status of the loan. Which in turn, became frustrating for homebuyers anxious to get into their dream home. Back then and even more so today, this process feels cumbersome, long, and drawn out. If this process was still the standard, mortgage companies would lose clients quickly and easily.

Not Your Father’s Loan Process

Today’s borrower is looking for a quick and seamless loan process. Ideally, they’d like to have everything done digitally. They’d like their mortgage company to step in as an advisory role. That’s where a digital mortgage platform comes in as the perfect tool for today’s kind of lending. In a nutshell, a digital mortgage eliminates inefficient procedures, automates workflows, reduces origination costs, and saves time and money for lenders and borrowers alike.

Borrowers can apply for a home loan literally anywhere with a digital mortgage platform. Whether it’s from the comfort of their own home, on their lunch break at work, on the subway, or anywhere they have access to a digital device. Borrowers no longer have to use time off from work to bring information to their lender. The process nowadays takes minutes and can be completed all online. All that running around for documents homebuyers used to do, is now digitally uploaded or quickly typed in. Assets are verified in seconds. The status of a loan can be updated in a fraction of the time it used to take making the process pleasant for everyone.

With the advancement of mortgage technology, getting a borrower approved for a loan is no longer a hassle. Lenders and borrowers now have the all of the tools they need in the palm of their hands with the right digital mortgage platform. They’re saving time, money, and hassles. With this technology at our fingertips, who would ever want to go back to the old way?