It’s never easy to apply for a mortgage, but thanks to advances in technology we can at least do so from the comfort of our own homes.
Millions of Americans already make use of the Internet for other financial services, such as online banking, paying bills and filing tax returns. But the process of applying for a mortgage is considerably more complex, and as a result most people are still forced to go for a face-to-face meeting with their mortgage officer.
But a company called Guaranteed Rate is hoping to change that. The company bills itself as the first “all-digital mortgage” service in the U.S., although it’s certainly not the only mortgage firm heading in that direction, AZ Central reports. Using Guaranteed Rate, it’s possible to shop for loans, input your personal data, view your credit score, upload supporting documents and find out if you’ve been approved for your mortgage, entirely online. The result is a faster, easier and often less expensive process than doing things the traditional way.
Although online mortgage applications are still in their infancy, Rick Hill, vice president of industry technology for the Mortgage Bankers Association, said it could become the norm within five years.
“It’s not as widespread as you might think,” Hill said, but noted the idea was fast gaining popularity.
Of course not everyone finds the online world so accomodating, but Guaranteed Rate’s Jaime Kinman said the option of a face-to-face meeting will always be available if customers desire it.
“But over time, I expect fewer people will come into the office,” she told AZ Central.
Customers will appreciate having the option at least. A 2015 study by San Francisco-based Javelin Strategy & Research found that many customers still prefer meeting face-to-face when they place a high value on confidentiality or security, or in cases when they have a specific question. But there’s a growing segment of people who prefer the flexibility that technology offers.
“It won’t be a long time before more people are doing it online and using their mobile devices,” said Mark Schwanhausser, director of omnichannel financial services at Javelin.
The trend suggests that more and more homebuyers and mortgage agents will switch to using computers to apply for and process their home loans, with the number of face-to-face meetings slowly dwindling, and less paperwork being mailed or faxed to the office. In particular, the Millenials generation, who have perhaps been a little slower to buy homes than their parents were, will likely take the online option in growing numbers as they reach for the housing ladder.
“There’s a huge preference among a lot of people to use whatever device they have handy,” Hill, of Mortgage Bankers Association, said. “The consumer really wants to use technology.”
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