Up until a few years ago, getting a mortgage was a tedious process that took at least a couple of months to complete. Loads of paperwork that customers had to submit and lengthy manual processing times made mortgage procedures seem like an uphill task. But technology has changed the landscape of the mortgage market with the introduction of advanced online apps. With just a few clicks, potential homeowners and investors can drastically lower processing time to around a couple of weeks. Given this scenario, lending companies have quickly adopted cutting-edge software that help streamline applications and finalize loans. Statistics released by Fannie Mae reveal that within the next couple of years, at least 58% of mortgage providers will have adopted Artificial Intelligence (AI) and Machine Learning (ML).
Signing Up with a Mortgage Company and Getting Pre-Approval is Easy
If you’ve been thinking about investing in a home, the first step typically involves getting pre-approved for the loan just as this article on Discover advises. To do that, you’ll need to contact a reputable lending company. Many online brokerages allow you to sign up over the internet. You’ll submit information such as income levels by way of pay stubs, investments, W-2s, and savings available. No longer will you have to visit the bank and apply for statements for the past three months and other documents. You can authorize the mortgage company to contact the bank directly and get the necessary paperwork using secure networks.
Alternatively, you can take screenshots of all the required documents and send them directly. This facility eliminates the need for downloading files into your computer before dispatch. Using Artificial Intelligence and Machine Learning, websites can record, process, and evaluate applications in significantly shorter time frames than ever before.
Use the Online Mortgage Affordability Calculator
If you would like an initial estimate about the price range you can afford, add details into the mortgage affordability calculator on the website. The application requires details such as your household income and expenses incurred each month. You’ll also put down the savings you can divert toward down payment along with other annual expenses. Click on the calculate button and the app will instantly display the loan product you’ll qualify for with the applicable rate of interest. Experts in the mortgage market advise that you choose a house that costs equivalent to or less than three to five times your annual income. It is also advisable to make a down payment of at least 20% to ensure that you only have a moderate amount of debt.
You Can Browse for Mortgages Using the Interactive Features
As this feature on Quartz outlines, one of the best features of the software adopted by the mortgage market is their compatibility with smartphones. Users don’t need to spend long hours tapping away on their computers to apply for loans and send in applications. You can use smartphones to check for the loan products available according to your credit scores and other information. Also browse for details about the best terms and conditions of the different options and assess the most viable opportunities to choose. You’ll find that machine learning guides you through the complete step-by-step procedure using data you’ve uploaded. By taking away the complexities, artificial intelligence streamlines applying for and getting loans.
Sophisticated Customer Relationship Management Systems (CRMs) Provide Real-Time Info
Whenever you log into the mortgage provider’s website, you’ll find updated information on their advanced Customer Relationship Management Systems (CRMs). The applications display real-time data like, for instance, current interest rates on loans. This feature is important given that interest rates can vary as much as four to five times every day. When you need to make critical financial decisions that can affect future stability, such data can prove invaluable. Most platforms also have online chat facilities with representatives answering queries with up-to-date guidance and advice.
Blockchain Technology Speeds Up Applications and Transactions
The mortgage market how employs blockchain technology, which is a digital, cloud-based database. The system comprises of a record, block, and chain. Each time you conduct a legal transaction, the information is stored on the record. This record also contains all the terms of the agreement along with the digital signatures of the people involved in the deal. Once the transaction is verified as legitimate, it is entered on the block where it becomes a part of the database.
Each block has a unique code and forms a part of a chain. Since the entire blockchain is a decentralized or cloud-based, all new transactions can be instantly stored and made available publicly while at the same time, safeguarding identities. All entities in the mortgage market can access the database using their computers. Thanks to these features, you’ll find that getting approvals for applications and settling the loan is done within days instead of taking months to accomplish. Even if you’re trying to sell the house and get cash quickly, processing can be done in a short time just as the experts at Wrightwood Homes explain.
You Can Still Visit Physical Mortgage Companies
Considering the fact that taking a mortgage is a significant life decision, many users prefer to visit physical premises and interact with real personnel. If you need more guidance and assistance with making the right choice, you can come in for face-to-face discussions on the best loan products. Most platforms also have telephone numbers that you can call. Although many low-income and less tech-savvy users are unsure about digital platforms, new technology is making it easy to understand the procedures of getting a loan. The coming years may see the mortgage market using advanced versions that are even simpler to navigate and use.
For mortgage providers, sophisticated software expands their customer base and helps them provide more efficient services to the people who contact them.