Attempt to imagine a particular area in your life where modern technology hasn't taken over. Fairly tough, correct? Wherever you turn, individuals are interred in their tablets and smartphones. Work stations are packed with the most recent in software and pc programs. Even schoolrooms are packed with high-tech devices in order to assist teachers to educate pupils more efficiently.
Technological Development certainly has influenced pretty much every facet of our day-to-day life, as well as how you are applying and will get authorized for a mortgage.
From the start to the end, groundbreaking technologies are refurbishing every single step of the mortgage loan process your lender, the real estate broker, reverse mortgage lender, and anybody else engaged in the process. There are lots of advantages that technology provides within the mortgage sphere.
Benefits That Technology Has Brought to the Face of Mortgage Lending
With the appropriate tools in your hands, you can substantially cut down the application and authorization times by greater than half. It is not unusual to be subject to approval for a mortgage in only a few short days. Digital mortgage instruments also assist you to remain in closer touch with your lender to guarantee that all the required information is appropriately and correctly transmitted.
Apart from the online request procedure, one of the greatest ways that technology has certainly influenced the mortgage lending process is through the introduction of an electronic signature. – or ‘e-signatures.' Thanks to the advent of e-signatures, you are no longer required to have to hand-produce papers in person.
Merely initialing your first and last name on the document in an electronic format and mailing it to the required parties has trimmed a significant amount of time off the whole process, and made things far more suitable for all those involved. This is particularly useful when there are a lot of back-and-forth document exchanges that have a tendency to be fairly common.
As long as you have a pc, a portable computer, tablet and smartphone, you can view and verify the status of your loan application at any point, and from any location. There are even smartphone apps that act as a whole loan processing administration system.
These apps link all the interested parties in the mortgage process so everybody can stay in continuous communication. Just installing an application on your smartphone can immediately offer complete transparency to you, the borrower, the financier, and your representative, in the mortgage process from beginning to end. Anyone interested can verify the status of a mortgage application at any point in time.
Has the underwriter gotten your application? Is approval provisional? Has an evaluation been requested? Has the title been commissioned and received? These are only some of the issues that can be responded to thanks to the incorporation of technology in the mortgage loan process. Everything is being updated in real time, providing you with up-to-the-minute information as required.
Instead of a paper-based structure, methods can be computerized and dealt with in an electronic manner to accelerate any steps that were once finished manually. Electronic workflow processes may be used for signatures, gaining access to information on file, approvals, and much more. For example, throughout the mortgage process, all of the borrower's data can be collected in an electronic format and then automatically pushed across to the underwriter. If the underwriter thinks that more information is necessary, it may be sent back to the mortgage processor with this request.
The expenses associated with the mortgage process can also be substantially reduced. Instead of trundling across paper copies among the loan administrator, loan processors and underwriter, all those involved in the lending process could gain access to such information remotely and send it to the required parties rapidly and easily. Not only will this cut costs, it also reduces the odds of documents becoming lost or dropped.
New innovations in technology happen all the time, and as such, borrowers and lenders can anticipate the lending procedure to be so much easier and more cost-effective. Although you can use the necessary technology yourself, be sure that the mortgage agent you work with is keeping up with such technology too, and is using it to help save a load of time and prevent a lot of prospective dissatisfaction.
All of the customer information that goes into a mortgage loan underwriting procedure exists somewhere as digital information. Gathering that information into files, printing them out, transferring them to the underwriting division and then imaging (or worse, keying) that data back into the LOS is something that we must never do again. And yet, lenders do this tango each and every day.
This is where mortgage technology should be concentrated on the coming days. A mortgage underwriter who is able to process two to 2.5 loans for each day, according to many studies among them the Mortgage Bankers Association, can with the appropriate application of technology process as many as four times as many loans. Assuming that these professionals are amongst the highest-paid in the lender's shop, the effect on the lender's cost to originate will expose a huge return on your investment.
We have the necessary technology today to shift this data effortlessly between different systems and to authenticate it electronically. In fact, we possess the expertise today to do so much to help improve the lender's final product, but it simply has not been concentrated on in the right spot.