Since borrowers expect electronic convenience in all aspects of their lives, if you place a paper form in front of them and expect them to fill it out by hand, one risks losing their business to a non-bank, online-only lender who they believe better understands their needs.
Fremont, CA: Borrowers want digital mortgages and are unconcerned if the whole process takes place online. In reality, two-thirds of borrowers said they would be interested in a completely digital mortgage in a Fannie Mae survey.
Customers welcome the potential for a streamlined process and faster closing, even though they don't want to remove the human factor from the equation (the same survey found that 65 percent of respondents prefer to have an individual clarify terms and choices, and 58 percent want someone to help them review final documents).
Here are the benefits one can expect to enjoy by offering a digital mortgage:
Fulfilling Borrower Expectations
From how they interact with others to how they shop, collect knowledge, and register for almost everything, millennial borrowers—who now make up the largest segment of homebuyers—have grown up with digital technology.
Since borrowers expect electronic convenience in all aspects of their lives, if you place a paper form in front of them and expect them to fill it out by hand, one risks losing their business to a non-bank, online-only lender who they believe better understands their needs. A digital mortgage demonstrates that one appreciates customers' time and effort as well as the borrower experience. This message will become even more critical as Generation Z begins to enter the housing market.
Conducting Interviews Becomes Easier
Borrower interviews, while important and beneficial, can take a long time for all parties involved. Calyx ZipTM and other digital interview solutions make the process mobile, enabling customers to answer all required questions from any computer, at any time and in any place. With the online interview, the loan origination process gets off to a quick start for borrowers, simplifies an otherwise intimidating process, and is millennial-friendly.
Helping with Verification
Documentation, verification, valuation, and underwriting are all necessary and time-consuming steps in the mortgage process. These required tasks will take less time and effort for teams if they use an automated digital mortgage process. The use of technology to streamline loan originations is exemplified by the use of digital assets, income, and job verification. Through their AccountChek service, FormFree, one of Calyx's integrated technology partners, automates the process by finding the details lenders need without requiring borrowers to provide it. By making the process easier for your clients, the correct data returned will cut the time it takes to close by up to 20 days.
See Also : Top Mortgage Technology Solution Companies
