We live in a world saturated with instant gratification, but for those who have experienced the home loan process firsthand, the process is often bulky and manual—and far behind the digital divide compared to other financial services.
So why would buyers settle for anything less than a technology-driven mortgage that streamlines the process, reduces uncertainty and gives you control of the transaction upfront?
What many buyers don’t realize when they use their real estate agent or neighbor’s recommendation—or even the bank where they keep their savings account is that the modern, digital mortgage is here already. Technology better positions buyers to make informed, empowered decisions to enhance and shorten the process of buying a home. Here’s how:
Conventional loans currently close in an average of 47 days. Ever wonder why? When you get your “preapproval,” it fails to take into account factors that could limit how much you have to spend on a home. Normally the “fine print” only comes out when you’re in underwriting- which is the step where your financials are verified after you think you already qualify based on very few factors that you were asked for upfront.
Technology can help lenders evaluate these factors sooner in the loan process, helping you have a more realistic view of what you can afford and avoiding a huge disappointment later.
For example, if you are set to receive alimony for another 5 years, that can greatly impact your monthly income and afford you more house. Or conversely, if you have limited cash reserves, it could impact your ability to receive a loan despite an income and credit score that made you believe that you could secure more square footage.
Technology can help lenders evaluate these factors sooner in the loan process, helping you have a more realistic view of what you can afford and avoiding a huge disappointment later. And close significantly faster since it’s a one-session process.
So, it’s important to consider, how much is your time worth?
The financing process used to be wholly dependent on a loan officer to control the entire loan, earning a handsome compensation based on the rate. This still occurs with many lenders, incentivizing higher rates to meet high commissions. The universe of products you’re offered is often limited.
Technology can remove that bias. For instance, going through a digital mortgage, you can access a universe of options. Compare it to an airline- would you just look at one airline for pricing—or go into an exchange to find the right price?
By digitally entering your information in a one-session,comprehensive process, you can avoid having the same conversation multiple times, answer questions on financial gifts or correct errors on your credit report and more, giving you more control and certainty. It also allows for a more efficient collection of necessary documents like tax returns and paystubs, that during a more manual process, a lender may ask you for several times.
But most importantly, knowing where you stand and why earlier in the process can make a huge difference. Nothing’s worse than finding out your home purchase is failing when your kids already said goodbye to their neighborhood friends and you sold the pool table that won’t fit in your new basement.
Home Financing Re-invented
Technology is integral to a streamlined home loan experience. Access to tools and support needed to make empowered decisions on your financing should be a no-brainer in today’s digital world.
Make informed choices that are right for you with the help of industry-leading resources. Learn more about how Neat Capital has revolutionized the digital mortgage process.