In a world where blackberry messenger is no longer the gold standard, it’s time to upgrade and learn about the new mortgage tech you’ve been missing.
If we asked how you prefer to communicate with your friends, how likely would it be that you might say Blackberry Messenger? (If you’ve always had iMessage and have no idea what we’re talking about, it’s clear that this technology is extinct).
Just as BBM is a thing of the past, so too is the archaic mortgage process of quick, partial approvals that carry empty promises and set you up for unfair pricing and drag you through an arduous process of paper pushing. Let us be clear: in 2018, there is no longer a good reason for that. Have you gotten the upgrade?
New Expectations of Modern Lending
What it means to be a phone messaging system has far surpassed our previous expectations and so has our expectations when buying a home with a mortgage. If you wouldn’t be caught dead inviting your friends to message you today using little plastic buttons, why would you seek a home using a mortgage process that hasn’t changed in decades?
We understand how overwhelming it can be to sift through articles touting new technological advances but never fully understanding how it impacts you, so we’d like to offer a clear definition of digital mortgage in 2018.
What is a Digital Mortgage?
You might be asking yourself, what-the-heck is a digital mortgage anyway? Is it an application you fill out online? Is it an electronic document submission? Is it an internal process that saves time? Let’s clear all this haziness around what a true modern mortgage is.
Unfortunately, Digital Mortgage is a loosely used term that is highly misused. Many lenders have enhanced their process using one or two technologies and then claim to have digitized the process. They may have a quick application or even a portal for you to upload your documentation, yet they are not comprehensive in any sense. These are all useful improvements but are only components of the process. To offer a truly digital mortgage it is imperative to consider the entire customer experience including feedback, and empowerment to control the entire process. To raise the standard of lending and elevate to a modern, advanced definition, we’d like to first explain the five components that comprise a comprehensive modern home.
Despite the introduction of a digital mortgage to the mortgage industry through the popularity of speedy, 60-sec pre-qualifications, and portals for document collection, you’ll often experience the same long, drawn-out process along the way once the real action begins. That’s because the entire process has not been upgraded to reflect modern times. It’s like using an iPhone X but running software from the first iPhone – it just doesn’t work – at all. A digital mortgage in 2018 is truly comprised of five primary components: online pre-approve and application; electronic documentation; asset linking; borrower portal; real-time options; and real-time underwriting.
5 Primary Components of a Digital Mortgage
- Digital Pre-Approval
- Digital Application
- Financial Data Linking
- Borrower Portal
- Real-Time Optimization & Underwriting
The 5 Primary Components of a Digital Mortgage
- Digital Pre-Approval
Current technology enables us to easily apply in a stunted web-based application that offers borrowers a pre-approval or pre-qualification letter; this promise from lenders enables borrowers to begin the process of buying their dream home. We’ve noticed these quick and easy digital pre-approvals often reduced the time and need to work with a loan officer in person and further empowers buyers to shop easily online and get instant feedback for the plausible amount they might receive.
Despite the attractiveness of a 60-second pre-approval, these applications are far from robust and miss many crucial questions that often lead to stress and anxiety down the road. While these are quick and easy tools, we caution borrowers not to rely heavily on approvals that are offered after so little due-diligence. Therefore, non-comprehensive approvals set high expectations while often creating more mistakes and delays than necessary.
- Digital Application (Electronic Document Submission)
The application process is the most common area for lenders to innovate upon on when embracing technology. You will find a wide array of “digital” applications ranging from simple online forms to dynamic, customized experiences offered at leading firms like Neat Capital. Along with the application, most lenders have gone paperless thanks to simple technology that enables borrowers to upload their documents to secure servers or applications. This electronic document submission technology not only saves time and space but additionally supports green initiatives to improve impact on the environment.
Although these are powerful reasons to use electronic documentation, most lenders still are not using the full potential of the digital era. Some still accept mailed-in documents and faxes while others are receiving your data electronically but then manually reviewing each document as if you had dropped them off in a folder. Is that truly modern?
- Financial Data Linking
Since the popularization of asset linking with the advent of Mint in 2006, linking your accounts to get updated data and confirm proof of assets, many lenders have jumped onboard. This simple and secure technology mitigates human error and reduces much time spent collecting bank statements, pay stubs, and income statements. The best part is, you no longer need to submit new statements every time you buy something new while applying for a loan, it automatically updates.
Although you may still download statements to show proof of assets, this will continuously have to be updated throughout the process and requires manual review. For this reason, most lenders have adopted this simple and secure technology.
- Borrower Portal (with Real-Time Feedback)
Some home loan lenders offer borrower portals where you can upload documents and view the progress of your loan, but most portals hardly offer control to customize your terms. A modern portal offers you the ability to edit your application, adjust your terms, and further customize your application. With innovative technology that was created with the borrower in mind, we offer the opportunity to take complete control of the entire process, offering tools – not just static feedback.
- Real-Time Optimization, & Underwriting
Even if other companies have all of the items above, they’re only collecting your data, At Neat Capital, we’re not simply collecting data in a digital format, we’re interpreting it, feeding it back to you with optimization and offering you the opportunity to check our work and make an informed decision using our innovative tools and process. In one session, you will know you meet the requirements for the mortgage you applied for and be able to quickly and transparently select the best program and terms for your unique situation. That’s what a digital mortgage is: fast, seamless, and transparent. There are no other lenders who can say that they can do this.
Most mortgage processes typically reflect a take-it-or-leave-it approach. This is a thing of the past. You no longer hand over all your sensitive data and then wait two weeks for an offer that you can’t afford or that doesn’t meet your needs. By offering real-time feedback, optimization, and support using our technology and home loan advocates, you are in control; you customize the terms to reflect your scenario all whilst receiving real-time updates.
A Digital Mortgage in 2018
The five components of a digital mortgage are exactly that- components. Without all components functioning together, is it truly a digital mortgage? Will it offer you the opportunity to sit back, relax, and know your loan will close in record time?
A true digital mortgage combines high-tech service with human touch engagement - Ellie Mae
All these components are great, but if you are unclear on where you stand and what your options are in real-time, why would you opt for some time soon? A digital mortgage in 2018 therefore, must be defined as a modern solution that both incorporates and innovates on current technology to empower borrowers to experience control, transparency and dramatically improved timelines.
A digital mortgage in truly comprehensive when it empowers borrowers to experience control, transparency, and dramatically improved timelines - Neat Capital
FOMO: The Future of Mortgage is Out
Fear not, the future of mortgage is here. It’s out and it’s available for your use. Don’t be the home buyer who sits down with a banker. We live in a world of instant gratification where you can get real-time feedback, optimization, and underwriting in record efficiency, speed and transparency now; don’t wait until a month or two from now when you’re being asked to mail in your paperwork. We’re here to tell you all about the true meaning of a digital mortgage so you no longer must fear you’re missing out on a frictionless loan.
Although most mortgage companies have a minimum of one component to a digital mortgage, none have every element, until now. We’ve innovated on what it means to get a modern mortgage, that’s why we’re re-defining digital mortgage as we know it. Neat Capital is the only lender in America that has integrated all these tools including real-time customization, underwriting, and therefore, certainty in a traditionally uncertain industry. It’s not just about the technology but rather what we do with it; it’s the way we innovate upon the data you give us to help you have greater control over your options that make it stress free and seamlessly simple.
Are you Getting the Digital Mortgage Experience?
If you’re working with a lender already, it’s important to determine if you’re running in the right circle. A digital mortgage is now so much more than a simple digital application. It stems into the intuitive feedback and control you have over the entire process and with your money. In a world where blackberry messenger is no longer the gold standard, it’s time to upgrade and learn about the new tech you’re missing. Do not be fooled- many companies will tout their digital prowess but still request information through fax or close your loan in the industry average of 39 days, which is 2x the average of true, modern lenders. If your experience is stressful, frustrating, and lacking in support specific to your needs - both digital and human - it's likely you're not getting the digital mortgage experience.
What to Ask Your Lender Before Committing:
Here are a few questions to ask your lender to determine if you’re in good company, or might need to re-evaluate.
Q: Do they have real-time underwriting?
Q: Will I know that I’ve met all the requirements, and will I be able to select and optimize my loan myself?
Q: Does the technology allow for 24-hr loan commitments?