🏡Becoming Virtual, Reality in the Digital Age💻
The mortgage process requires a lot of paperwork and often takes a long time. Luckily, mortgage lending has recently digitized like many other industries. There are now all–online mortgage options that make lending faster, simpler, and more comfortable for clients.
How the online loan application process works
The online loan application process will vary depending on the lender or mortgage broker that you’re working with. Yet, most online lenders provide many of the same services as brick–and–mortar lenders.
You can get prequalified and preapproved for a new home loan, request mortgage rate quotes, submit a loan application, and upload financial documentation, such as pay stubs, tax returns, bank statements, and more.
Additionally, you can close on your home mortgage and e–sign documents (digitally sign) – all from the convenience of your home.
Continued popularity of online mortgage applications
According to Fannie Mae, the use of online–only mortgage lenders increased 5% between 2018 and 2021 (7% to 12%, respectively). Furthermore, first–time home buyers are more likely to give electronic access to their financial records, compared with repeat home buyers. Researchers suspect that the rise of online mortgage applications could represent a demographic shift “since many younger consumers grew up allowing digital apps and online companies access to their financial information.”
Additionally, young home buyers want their mortgage experience to include a combination of high–tech and human touch. They aren’t the only ones, either.
A Deloitte banking survey found that:
- 33% of people already use online platforms to apply for loans
- 26% of people prefer an online application for a mortgage or refinance
Reasons to apply for a mortgage online
There are some clear benefits to working with a virtual mortgage broker:
- Get preapproval for the home you want faster
- Upload application documents securely online
- Sign digitally and avoid missed–paperwork delays
Speed and simplicity are the biggest advantages of applying for a mortgage online. As shown above, online processing can dramatically reduce closing times on a purchase or refinance loan.
That’s a big benefit. With today’s interest rates still near historic lows, people are eager to buy and refinance their homes – and they want to do it soon. Digital brokers aim to help you secure a low rate fast.
Many mortgage shoppers also love the idea of importing their loan documents digitally. In our case, we can upload all documents from employers, banks, or tax servicers directly to the lender.
You can save a lot of time by not having to dig around for your paper W–2s, bank statements, tax returns, proof of assets and so on.
With DocuSign you can e–sign much of the documentation required for your mortgage.
Since unsigned paperwork is one of the most common reasons why mortgage transactions get delayed, the ability to e–sign reduces the chances of an important piece of paperwork going unsigned and delaying the process.
(In case you needed any more perks of your Mortgage Broker being paperless/virtual)
8 benefits of being virtual
If you’re still not convinced on the benefits of a virtual environment, please take the time to read though what we believe are the top 8 advantages to being paperless/virtual.
1. Increased inclusivity
The first benefit to virtual mortgage brokers is that clients who are worried about Covid will often find virtual experiences much better to participate in. It means they don’t have the anxiety that might come by being out in the public during these discouraging health times
2. Improved accessibility
Being virtual makes up accessible to any client providing they have access to a computer and stable internet connection. It doesn’t matter what their mobility is like, they are able to login virtually and have the exact same access to us as everyone else.
Plus, we can be contacted and accessed at any time over the Internet, 24 hours a day and 365 days a year.
3. Community and relationship building
Another benefit to being virtual is anyone who has previously used our services can refer their neighbors, family, friends, or business to us. This allows us to build relationships in the community.
We can then collaborate on projects and talk through ideas… which can also help with feeling connected to your local community.
4. Cost savings
There is no need for travel (or even leaving your house). As well as saving travel costs, virtual will also reduce your carbon footprint related to gas and fuel.
There are absolutely no costs with having your mortgage broker doing everything virtually/paperless.
5. Expanded world view
Being virtual means we can help virtually anyone across BC/Canada now. If you have a family member who lives in the interior or even just Vancouver, we would love to help them with their mortgage needs. Since all documents and be sent online and meetings if required can be done via zoom we don’t have to live locally to our clients anymore.
This really opens up our reach as Mortgage Brokers.
6. Improved technical skills
By virtue of being on a computer during the virtual mortgage process, clients can see immediately what they need and what potential deals we can provide them. The application process is easier for both us and the client.
Also, with more businesses now shifting to virtual processes, we can instantly interact with our underwriters, realtors, and appraisers.
7. Immediate feedback
Being virtual provides the opportunity for immediate feedback as opposed to traditional methods of having to make an appointment to come into the office during set days/times.
This can accelerate our job, letting us progress applications a lot quicker than being in person previously allowed.
8. Greater flexibility and comfort
Clients can contact us and respond at their own pace now, if anything arises, they have the knowledge of knowing even if they are on holidays, they have access to us and their application.
It’s also a more comfortable experience for clients knowing that all personal information isn’t going anywhere besides to your mortgage broker and your potential lenders. All information is secure, and safety done from any computer. Documents are all legally signed online as well meaning even if your job has unusual hours, you can complete your mortgage process quickly and at your convenience.