October 26, 2017 | By RGR Marketing Blog

The Future in Many Respects Has Moved Online

The new wave in mortgage lending for some time now has been online automated mortgage brokering. This type of mortgage lending automates the entire process of obtaining a mortgage. Borrowers go online, provide their information, have their risks assessed and terms generated, and are approved or declined for their mortgage, lightning-fast over the Internet. So is this the wave of the future when it comes to mortgage lending?

Early signs indicate yes. Automated mortgage is being called a digital mortgage revolution. As Millennials move more and more into the housing market, mortgage lenders will be faced with a potential client base that is accustomed to shopping for anything and everything they want online, and getting their purchase without ever leaving the house. There’s no reason not to expect mortgages to fall into that category. Read on to learn more about what may be the very future of the mortgage business.

With Online Mortgage Brokering, Speed Is Key

An online automatic mortgage application can deliver conditional approval for a loan in as little as ten minutes, meaning the company can convert more mortgages in a shorter amount of time. This also means that borrowers have fewer opportunities to get frustrated and go somewhere else.

Automated mortgage broker services may also bring customers to the mortgage-lending table faster. Applying for a mortgage can be a stressful experience, especially for people who know their credit is not as strong as they would like. Customers who are shying away from applying for fear of being rejected may be missing out on a mortgage loan opportunity. But if they are able to apply without risking being rejected in person, they may be more likely to see what is available.

The Future of Mortgage Brokers

Of course, this does not mean the end of traditional mortgage brokers, just a change in the way they do business. Just as journalists had to become accustomed to the different standards, time frames, and platform of posting stories online rather than submitting them to a newspaper editor for printing, mortgage brokers will need to get used to working with data on a computer screen rather than facing actual human beings seeking loans.

There will still be plenty of work behind the scenes for people in the mortgage industry, both for the people who maintain the software and the people who operate it.

There are few downsides to automating services, and mortgage lenders are well advised to get on board. For example, mortgage brokers today can spend up to 90 percent of their time processing loan applications. Reducing this time to a fraction can mean dramatically better service for the customer, and greater profits for the lender.

Traditional mortgages can take months to close, vs. the minutes for conditional approval of an automated mortgage. The advantage is with online mortgage brokering is pretty clear.

Finding the Right Software for Automated Mortgage Loans

Of course, to switch to or to add an automated model to your mortgage business requires that you find the right software platform. You are putting a lot of trust in your automated mortgage software, so due diligence is a must.

The ability of the top programs to make instant and accurate risk decisions and to recommend the best courses of action is truly remarkable. These programs can collect data and operationalize risk models almost instantly. Dedicating a significant amount of time to researching and comparing the top software programs in the industry, and finding the one that will work best for you and your mortgage company is well worth the effort.

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