Digital mortgage technology has turned the mortgage industry upside down – in a good way. The old school method with stacks of documents shuffled from one person to the next only to get lost is a thing of the past. Now, digital home loans are streamlined.
Smart lenders who utilize the latest technology make the entire process much faster. And any time a home loan is faster – borrowers are happier. Having all the loan information online in one place adds efficiency that six years ago would have been impossible. Now everyone is on the same page.
That includes the
- Loan officer
- Loan processor
- Borrower
- Realtor
This increased customer service creates a better customer experience and a smoother mortgage process. Read on to find out more about the entire digital mortgage process and what it means for you as a borrower.
How Digital Mortgages Affect You, the Customer
- Enhances convenience
- Increases speed
- Improves efficiency
- Strengthens customer service
What is a digital mortgage?
Let’s talk a little about the history of digital mortgages. Digital mortgage lending has been gaining steam since it first started being taken seriously around 2016.
Initially, lenders and borrowers alike were unsure what to expect. Would borrowers get lost through the cracks? Would lenders still offer personalized service? The banks, brokers, and credit unions that understood the importance of utilizing technology while maintaining a high degree of personal touch excelled in this new paperless environment.
But, on the flip side, you can tell by online reviews those lenders who hoped the paradigm shift to the digital mortgage would relieve them of their customer service tasks.
Taking Advantage of Technology
A digital mortgage utilizes technology and the internet to make the entire home loan process paperless. Rather than faxing, mailing, or dropping off stacks of documents, borrowers can upload them to a secure server. But that’s just the paperwork part.
The most important thing is communication with your lender and loan originator. Getting all the paperwork in order and uploaded makes the rest of the process much smoother. And it gives you more focused time to spend talking, texting, or emailing your loan officer to ensure you get the loan you need.
Here’s an example. Once you’ve uploaded your documents and have your initial prequalification letter, you’ll start shopping. That’s where the fun begins. In one weekend, you might find 5 or 10 different houses that you’ll want to know what your payments will be and if you can afford them.
Maybe you find a home that needs some work, and you wonder if the loan you’re getting will allow that. And since your loan officer isn’t weighed down with chasing up paperwork, they can give you all the information you need at a moment’s notice. That’s the way automation should work – it’s there to make your life easier.
The Ease of a Digital Mortgage Application
Most borrowers agree it’s much easier to fill out an application online than to do it over the phone or in person. And the organized borrowers have most information they need at hand to make completing the application fast.
The other thing that makes many applications easier is that instead of looking at several pages of boxes to fill out – the application is given to you in sections. That makes it not so overwhelming. If you need to take a break in the middle of the application, it’s easy to save and come back to.
And, if there’s a co-borrower, they can fill out their information separately. Plus, the great thing about it is that they don’t even need to be in the same place you are. For example, if one spouse is out of town on business, they can still fill out the application when they get back to the hotel at the end of the day.
Enhanced Digital Mortgage Experience
Let’s define the word enhanced. Here’s what WordNik.com has to say:
In a version or form that has been improved or made better than some other standard.
Nowhere in that definition are the words: more difficult or frustrating.
At Homestead Financial Mortgage, our staff personally works through our entire process to ensure our customer experience is a breeze and that the mortgage process is enhanced to help the borrowers. When you add that we’re available on the weekends, you can see why we’re a top lender in the states we service.
With a digital mortgage, borrowers can check their loan status from their phone, laptop, or computer. They can see what documents they still need to submit, and what step in the process they’re in. That, in turn, helps their realtor because the borrower feels confident their loan is moving forward as it should be.
How is the digital mortgage process different?
When it comes to processing your loan, there are many similarities of processing digitally vs. bringing in paperwork, faxing, or emailing.
Your loan processor will still need the same documentation:
- Income documentation like current pay stubs and W2s
- Child support payments if you’re using that for part of your income
- Bank statements
- Investment and retirement account statements
- Income taxes
- Gift letters
- Photo ID
Other possible documentation:
- Divorce decrees
- Bankruptcy documents
- Profit and loss statements for self-employed
Will my documents get lost with a digital mortgage?
No – your documents won’t get lost. That’s one of the biggest advantages of the digital mortgage process. You can upload all of your documents to one secure platform. Many borrowers don’t realize that emailing documents isn’t safe.
But the latest digital platforms are as long as the lenders follow best practices which Homestead Financial does.
Documents Are Easy to Upload
Before the digital mortgage process, many borrowers submitted documents in person or via email or fax. But quite often things got lost. So the borrower had to keep resubmitting documents again and again. That was very common and extremely frustrating for all involved.
That’s changed with the digital mortgage. Once you upload your documents, they’re on the platform. So they won’t get lost.
Your most significant responsibility as a borrower is to make sure that every document you upload is readable, and all pages are included. Even the ones that are blank – like the last page of a bank statement.
Also, signing papers online using digital signatures makes the process much easier. Closing can even be done virtually, at your home, the title company, or the lender’s office. Whatever works best for the borrowers.
Hectic Life? No problem.
Who doesn’t have a busy life and full schedule? Whether you have children running around, a challenging career, or both – finding time for a sit-down appointment for more than one borrower is almost impossible. Even if you’re retired, you’re probably still busy visiting family and friends and maybe traveling. No matter what your everyday life challenges are – a digital mortgage can fit into your schedule.
It’s easy to grab your laptop or iPad, sit on the couch and start the process. Instead of getting ready for an appointment at the lender’s office, you can fill out the application while having a cup of coffee in the morning still in your pajamas.
Now, no matter how busy your life is – it’s easy to fit in applying for a mortgage.
How is Homestead’s digital mortgage different?
In two words – our staff. We’re not like the enormous companies with 800#’s, long waiting times on the phone, a different customer service representative every call.
We’re local. You can walk right into our office. Call us, and we pick up the phone.
Or, if you feel more comfortable, have a seat on your comfy couch and get the mortgage you need.
Homestead Financial Mortgage is a top digital mortgage lender that knows how to make the home loan process smooth and stress-free. Our low-interest home loans are some of the best in the states we serve. We service Arkansas, Colorado, Florida, Illinois, Indiana, Kansas, Missouri, Ohio, Tennessee, and Texas. Contact us today to learn more about the home loan products we offer that are right for you.