Tech in the Mortgage space

Written in collaboration with Urban IgniteJune 5th, 2018

The tides are turning in the mortgage world. Major financial titans have rushed to capitalize on the wave of financial technology companies, or fintechs. The way mortgages are being handled is evolving, and evolving fast. While larger institutions are just now catching up, there are several developers and fintech pioneers that have spent years getting the digital mortgage process down to a science. These companies have created technology that folds a variety of revolutionary features directly into the interface of their platforms. Like every other facet of the world today, tech is revolutionizing the mortgage space. Among the largest contributing factors are the changing demographics of today’s borrowers. The ease-of-access offered by fintech platforms helps to better meet the needs of this maturing demographic. LoanVerify is here to help break  down and outline what features you should seek out in the mortgaging application of your choice.

 

More People Comfortable with Tech Equals more Fintechs

It goes without saying that computers and smartphones have profoundly changed the way we interact with the world. This is most clearly seen with Millennials and some Gen X’rs who are generally more trusting in new technologies to handle important tasks. Whether it be transferring money to a friend via cash apps or purchasing important items online we can find this group of people incorporating tech into their lives where it has never been seen before. This comfort and trust in digital transactions also holds true in the mortgage space, as borrowers who grew up with computers now comprise over 30% of this market. As such, established lenders want to capitalize on this trend in order to capture that younger target audience. This is a common sense move, as that statistic will only continue to grow as computers in our daily lives become even more commonplace. To take this even further, as this group enters the market-place in larger numbers, their dollars will be spent with the fintechs that offer: the most convenient processes, comparable price structures, and commitments to their clients. The latter may even prove to be the most important, for in today’s age of social media, a company that does not do right by its clients won’t exist for very long.

The Digital Processing of Mortgage Applications Cuts Costs and Saves Time

Obviously, saving money is important to everyone, and when you’re shopping for mortgages the last thing you need is unnecessary costs to be built into the rate and fees of your deal. No one likes getting a bill only to see extra charges. The explosion of fintech companies in the aftermath of the 2008 financial crisis, serves as a sign that borrowers have less faith in traditional financial institutions.

Perhaps, more so, it is a testament to the way fintechs save borrowers time and money. In fact, a study conducted by the Federal Bank of New York found that mortgage-focused fintechs process mortgage applications faster and have fewer borrowers default on their loans, by as much as a whopping 35% compared to traditional mortgage companies. This lower rate of defaulting is important because it might be indicative of how a company, or type of company, handles business. So, what does this mean for you as a potential borrower and how does it highlight why mortgage fintechs are growing so fast? In simple terms, there is great value in taking a fresh look at how and where you shop for a mortgage. To understand further, we need to take a look at the suite of features being offered by some fintech platforms.

 

The Tools Provided By Fintech Platforms Prioritize Efficiency

The significantly faster processing of mortgage applications by fintechs all makes sense when you actually look at the process. It’s important to note, you the user, facilitate the whole process on a lending fintechs platform. Below, you will find examples of LoanVerify’s tools that keep the process simple. Other lending focused fintechs share some of these pieces, but LoanVerify offers unique features. You upload the documents needed and move the process forward on your own time – from a computer, or, from the palm of your hand. Users can benefit from features such as:

 

Instant document upload: No need to scan and email sensitive documents or run them to an office, just snap a picture within secure space of the app.

 

Mortgage calculators: Plug in your information, know your numbers and move through the process with confidence.

 

Message center: Using LoanVerify, the mortgage app, doesn’t mean you can’t access a person for help and advice. LoanVerify logs all communication between its borrowers and its licensed advisors for assurance and quality purposes.

 

Lastly, fintechs expedite the mortgage journey. All of these features come together to remove people & paper from the process. This offers potential homeowners a combination traditional mortgage companies cannot: the ability to save time & money while taking charge of their own mortgage journey.

 

Download The LoanVerify App Today

While larger institutions are just now getting into the tech-focused mortgage game, LoanVerify has been building our platform for years, bringing together the large suite of features, seen above, that compliment each other to build a highly refined experience for acquiring a loan. Download the app for free today and discover how LoanVerify makes the mortgage process simple.

Loan Verify Inc. is a Equal Housing Lender. NMLS #1550836. Pre-Approval is not guaranteed and is subject to credit terms and conditions. This blog is for educational purposes.