Do you remember what it was like to use a “dumb phone” or find a hotel using a map? Many of us can hardly remember, or possibly never lived, those days. Technology has drastically changed the way we interact with each other and go about our lives. Over the last few years we’ve seen phones turn into mini computers, cars start driving themselves, and relationships go digital. During this time of upgrades and automation the mortgage industry has been slow to innovate, relying on outdated systems to finalize your home loan.
Recently, however, the mortgage industry began a major overhaul. Lenders are starting to integrate technologies that make it easier and faster for you to get a mortgage. These changes offer less hassle tracking down old documents, increased transparency, and are trending towards a more user friendly mortgage process. Let’s take a closer look at some of the updates that are reshaping home loans.
One of the biggest changes to home loans is the ability to electronically verify your income, employment, tax returns, and assets. Back in the “old days” you had to spend your time tracking down bank statements and tax returns from previous years. Now, with the new electronic verification, you can just sign an authorization statement and your loan officer will track down all that paperwork for you, oh and your signature can even be done via email!
So how does electronic verification work? Once you’ve signed the authorization statement, your lender requests access to your W-2’s, tax returns, and other information from partnering companies like Equifax and the IRS. These companies locate and securely send the requested documentation back to your lender, who then moves forward with your home loan. This verification process drastically shortens the time it takes to collect information while saving you a lot of hassle.
Smart phones have created a world where information is instantly at our fingertips. Within seconds you can find the best burger in town or live stream the “big game” without even using your data. The power for us, as consumers, to access information from anywhere with cell service is forcing companies to become more transparent. Businesses are realizing that if they can’t answer your question online you’ll find someone else who can, aka their competition.
What does all this mean for you? It means that mortgage companies are providing more information about their home loan programs, costs, and requirements online in order to earn your trust and business. This gives you the freedom to research mortgage programs like never before. Using your tablet or phone, you can make an educated decision without feeling pressured. Simply put increased transparency means that you have more control over your mortgage options.
What to Expect in the Future?
Expect an upgraded mortgage experience, one that uses technology to create a seamless process from start to closing and puts you in complete control. Recent changes within the industry have reduced the hassle of tracking down paperwork and made it easier to find information online, but bigger and better changes are coming soon. Changes that could make the mortgage a completely online process you could experience from the comfort of your living room. After all your focus should be your dream home, not the mortgage process required to live in it.