Historically, prospective homeowners have applied for mortgages directly through the bank or through a broker. Although it’s a long cumbersome process, consumers haven’t had any other options or choices in this market, and banks haven’t innovated to improve the consumer experience. Mortgage Brokers traditionally have worked with the individual receiving a loan and coordinated with banks to ensure their clients get the mortgage that best suits their financial situation. Brokers have done the heavy lifting and leg work to find the loan terms and banks for the consumer. With the rise of Mortgage tech, the mortgage process can now be streamlined and solutions like OnlineApplication’s have helped make the process easier for the buyer, lender, and broker.
So why are more consumers adopting the online mortgage process?
The typical mortgage process is a lengthy and difficult process requiring many meetings, mountains of paperwork, and endless effort. Mortgage tech gives the prospective homeowner the ability to skip the worst parts of this painstaking process by allowing them to upload the necessary documents for application at their own convenience. This ability eliminates the unnecessary face-to-face meeting time associated with the traditional mortgage process. Mortgage tech also eliminates the hassle of bringing mountains of physical documents back and forth to the brokerage. The tedious manual errors that contribute to the lengthy mortgage process are eliminated through the use of this technology.
According to a 2018 study published by the Federal Reserve Bank of New York, “FinTech lenders process mortgage applications about 20% faster than other lenders, even when controlling for a detailed loan, borrower and geographic observables.”. This mortgage tech is already taking hold in the U.S. housing market, evidenced by the 15% increase of mortgage applicants applying online during 2016. J.D. Power released a study that showed that 43% of mortgage applicants applied online in 2017. This rise in applicants applying for a digital mortgage could be due to demographic factors. Millennials and younger consumers have grown up with more exposure to online tools and technology. Now that they are getting to the age of homeownership, mortgage tech tools are something that can appeal to their experience with technology. Additionally, the rise in popularity of digital mortgage tools has only increased with the onset of Covid-19. All of the meeting time and paperwork needed to be done digitally due to numerous lockdowns and restrictions, and as a result of this, mortgage tech stepped in to solve this issue.
Mortgage tech company OnlineApplication directly caters to this need. Platforms such as OnlineApplication are increasing in popularity by allowing prospective homeowners to replace face-to-face meetings and manual paperwork with fast, easy-to-use online tools. What makes OnlineApplication’s platform so special is that the use of AI allows client applications to be reviewed, approved, and packaged to be sent to the lender in a fraction of the time it would typically take. By helping prospective homeowners find a mortgage that suits their specific financial situation, OnlineApplication’s system can help both the broker and homeowners save time, money, and effort. Here at OnlineApplication, we make the mortgage process easier and more efficient for all parties involved.
Interested in learning more about how OnlineApplication can help improve your mortgage brokerage? Contact us for a free demo or consultation: