How Fintech Is Evolving the Mortgage Game

The concept of buying a home, is enough to give anyone cold sweats, especially new buyers that have seen how competitive real estate markets today can be. Fortunately, there are new ways to approach mortgaging that home you’ve always wanted thanks to the emergence of financial technology, or fintech, companies. Hold on you might be thinking, what is this fintech thing and why does it sound like “finsta”? Well, let’s break it down.

Fintech companies don’t have anything to do with “fake Instagram” accounts. Instead, the term refers to companies that utilize the comfort and convenience of modern technology to streamline banking/financial services, like getting a mortgage. The days of old boasted processes that required people to drive, (e)mail, or carrier pigeon mortgage related documents to a loan officer or bank. Where-as today, fintechs have introduced new processes, some of which, don’t even require you to leave your home in order to get a mortgage. It may sound a little too easy, and as such, risky. However, the research is in and the team here at LoanVerifyⓇ is going to breakdown for you three ways fintech companies are helping change the mortgage game.

Expedite the Process

The online and application based interfaces fintech companies utilize allows for a streamlined process across every aspect of acquiring a mortgage. The LoanVerifyⓇ app allows users to jump right in to the process by answering 7 simple questions, and then moves directly into the the pre-approval stage. This ease of access is more than just a gimmick.The Federal Reserve Bank of New York looked into the effectiveness of fintech companies in an expansive report and they found that fintech companies process mortgage applications 20% faster than traditional mortgage companies on average, from pre-approval to closing. One explanation for this is the paperless approach. The LoanVerifyⓇ app allows users to upload their documents right from their phones via either pictures or a connection to Google Drive and Dropbox. Allowing potential-borrowers to seek approval for a mortgage directly from their phones saves time on both ends, which means you can spend more time de-stressing and less time running back and forth to a stuffy mortgage office trying to get all your papers in place.

Shopping Around Just Got Easier

Nobody likes shopping around and struggling to find good deals, which is why more people are ditching the mall for Amazon. Similarly, a highly useful tool provided by some fintech companies is the ability to compare your available loan rates side by side directly from their platform. The LoanVerifyⓇ app presents all of your numbers in an easy-to-read estimate that breaks down all the finer points clearly. Having trouble deciding which is right for you? Not sure what some of the technical jargon is actually saying? Don’t worry, you can still contact a qualified loan advisor through the app, which automatically logs all the conversation transcripts so there’s never any hearsay. Being forced to shop around for the best rate can be a drain on anyone, which is more incentive to save your precious time and hard-earned money and compare rates side-by-side directly.  

The Centralized Model Offers Increased Stability

The Federal Reserve Bank of New York found in their report that “fintech lenders may be better able to better accommodate demand shocks because they collect information electronically and centralize and partially automate their underwriting operations…” WAIT, what does all this mean and how does it help you save time, money, and create a less stressful mortgage process overall? I’m glad you asked! Essentially, it means that the digital processing and storage of loan information helps fintech companies better respond to times of high demand to curtail a slowdown of application processing. You may have a dream home lying in wait for you to secure a mortgage, and a traditional mortgage company experiencing a significant processing slowdown can mean a world of difference in acquiring the home you want.

The goal of fintech companies is to incorporate tech that makes processes quicker, smoother, and more user friendly. LoanVerifyⓇ has found a niche through developing a mobile app that  facilitates a mortgage process that is efficient, easy-to-understand, and secures a competitive low rate. LoanVerifyⓇ makes this goal our priority, leveraging a user-friendly app that saves you time and money. If the going gets tough, our certified loan advisors are just a click away to answer all of your questions and help guide you towards the loan that is right for you. It’s incredibly simple to get started with. Just download the app, answer 7 easy questions to help us identify your home buying goals, and upload your documents with the tap of a button to explore all of your mortgage options. Searching for the right mortgage can be scary, but LoanVerifyⓇ is here to help you make empowered mortgage decisions.