Is the world moving towards paperless transactions? Yes, it is. When it comes to mortgages, digital applications are all the rage and in a few years are set to completely replace the traditional mortgage applications. Online banking has transformed the way business is done, no longer are you required to spend hours in queues and booking appointments to sort out financial issues. There are no back and forth meetings nor the need to mail transaction documents or travel to your financial institution to finalize a mortgage deal. Digital mortgages allow you to communicate with a loan officer and broker via email and phone calls; all the documentation is still done only this time you fill online forms, scan and send important records via email thus reducing the cumbersome paper transactions.
Are Digital Mortgages the way to go?
Many financial institutions are now opting for online mortgage lending. There are many advantages of applying online both for the lender and the borrower; by using dedicated software, transactions are processed faster, with little room for human errors and fully conforming to government regulations. Major lenders prefer digital mortgages because apart from providing accuracy, they also give the lenders a competitive edge because most of the current tech savvy borrowers don’t want to spend hours dealing with paperwork and never ending meetings.
Online lending also shortens the underwriting and the application process. On average, traditional mortgage applications took up to 3 months to get processed while digital applications take a maximum of three weeks for all the due processes to be completed. With the underwriting, processing and loan servicing automated, digital documents are easy to manage and provide better efficiency. Applicants have the advantage of using a fast, transparent and simple process while lenders get more accurate information, save up on time and offer their clients more choices. Talk to your broker on the phone, get their perspective on what plan is best for you then research on it and fill out the application online. Since there are less overhead costs; mortgage lenders are bound to save money with lower fees and flexible terms. To make the process even simpler; some lenders ask you to grant them access to your financial accounts and their software picks up all necessary details required for the application. There is also a mortgage rate calculator on most sites to let you know the amount to be repaid depending on the number of years you deem fit to repay.
How to pick the best online mortgage lender
The trick is to read through the fine print with the terms and conditions, many complaints with digital mortgages arise from the fact that people don’t take time to go through what the lenders require of them. Find an experienced online mortgage broker to take you through the details; don’t just look at the competitive price in the interest rates. There are other charges that may not have been explicitly explained. Talk to the customer service assistants and get to fully understand all policies and packages before putting pen to paper. After your application has been approved; make your payments on time, build your credit score and you will have many options of lenders to choose from in the future. With a digital mortgage, you can track the progress online, get fast response to any queries and simplify your path to being a home owner. Save the trees, get a digital mortgage and help the world get greener.