Digital mortgage shopping has become a popular choice among borrowers, considering the amount of information it readily offers in terms of rates and terms. With the advancement in technology, a customer can tell if a lending institution has the mortgage products and services likely to meet their needs at the click of a button.
More than ever, lenders have no choice but to adopt digital mortgaging solutions to fulfill their clients’ expectations and streamline their business processes.
Forbes recently conducted a study on customer behaviors who used online applications, and according to their survey, 55% of homeowners were happy with the online application process. Perhaps the reduced time or fewer person-to-person interactions was their reason for embracing digital mortgaging solutions.
Going by this report, people want the loan application process to be simplified. Whether you are a lending organization that has not automated its mortgaging solutions or have not updated to the latest technologies, the following facts about a digital mortgage will influence your decision-making process.
1. An electronic signature is inevitable
The art of a successful borrowing experience relies on a customer’s ability to spot a lending institution with products or services that match their requirements. Since most clients will not mind embracing anything that reduces their time wastage and costs, adopting electronic signatures of documents seems logical to lenders. At the start of 2020, numerous lending institutions have created various solutions to meet their clients’ unique needs.
2. Reducing in-person meetings
Real estate was one of the most affected industries since the Covid-19 pandemic took a global toll. It meant that lenders were charged with conducting in-person interviews to know their customers’ credit history to determine whether they were qualified for a mortgage. Before that, lenders would schedule appointments with clients to fulfill their loan application requirements.
However, the social distancing chronicles due to the pandemic have changed the lenders’ ways of conducting business. Today, financial companies do not have to arrange for in-person meetups. The two parties need to engage online and submit e-signatures through the same platform, speeding up the borrowing process.
3. Better knowledge of internet usage has led to increased borrowing
The current millennials have grown up with technology. They have witnessed first-generation computers getting phased out by robust and efficient devices that can fit on the palm of their hands. Try to imagine the impact of increased internet usage.
The most obvious winner of internet usage in real estate and digital mortgage financing is making things better. Financing companies ready to customize their operations through an app have the upper hand at attracting a wide range of clients.
4. Better re-evaluation strategies
If lenders have learned anything thanks to the pandemic, it is the art of re-evaluating technology partners. For example, if your software provider only offered online documentation solutions with creating provisions for e-signatures, chances are you will go to someone else who provides both solutions.
Since your main objective is to provide an excellent customer experience, changing how you serve your borrowers can only work if your technologies are up to date. As you vet a technology partner, you might want to re-evaluate every software type they provide to determine if you will meet your borrowers’ requirements.
5. Increased innovation capabilities
Going by the changes people have seen over the years, who would have thought that a borrower and lender could ever do business without meeting on-site? To imagine that someone could apply for a mortgage from wherever they are and land the most lucrative offer is an understatement.
That is precisely how innovative digital mortgaging solutions are at the moment. In the years to come, people should expect better solutions to make the housing industry scale higher.
Now that you have understood how online mortgaging shapes the real estate business, it would be imperative to customize your solutions to meet every client’s needs. The first step is to work with an accredited technology provider to customize your digital lending solutions according to your needs. Next is to market yourself online to gain a more expansive presence. As you interact with your clients online, offer comprehensive information regarding your offers and terms and conditions to influence their decision-making process.