Digital Mortgages: Redefining the Mortgage Process
Like it or not, the modern world now largely exists in a digital age. This means that everything from shopping to visiting the doctor can now be done completely online. So many consumers are looking more and more towards these trends that entire industries have been created with this in mind, while others have long since abandoned the brick and mortar model.
Digital Mortgages Defined
The difference between a digital mortgage and a traditional mortgage is a digital mortgage begins and ends online. With many realtors even offering virtual tours, it’s completely possible to search and close without ever setting foot on a property or putting pen to paper, in the traditional sense.
With a digital mortgage, a borrower submits an application online. The lender then views the application, possibly addressing any further issues with the borrower. Closing takes place online as well through an eNotary. Once completed, the documents are sent via email and a digital mortgage is completed.
As easy as the process sounds, many institutions are slow to adapt to these changes. Or perhaps some changes have been made but not all. Some simply still love the idea of using paper.
Mortgages in the Digital Age
Many busy professionals have deemed traditional mortgages too inconvenient for their hectic lives. Many financial institutions are following suit and asking: Why not change the mortgage model, as well? Why not cut out the more cumbersome, time-consuming aspects of buying a house and streamline the mortgage process? Since so many consumers are now gravitating towards mobile banking, it only makes sense to offer mortgages digitally as well.
To meet this new mortgage trend, digital mortgage companies like Redfin and Better Mortgage have been rapidly expanding throughout the United States, with Better Mortgage now in 26 states as of January 1, 2019. Add to the mix companies like Notarize – an online company that offers a digital platform for legal, online document notarization – and it makes for a streamlined match made in heaven.
Notarize CEO Pat Kinsel had this to say about the digital process: “Our closing solution is a natural fit for Redfin because their customers are accustomed to a digital, mobile product. Our technology integrates to seamlessly to deliver an easy, intuitive experience so that buyers can get on to moving and unpacking boxes in their new home.”
Financial institutions who want to be relevant in the future must think about new and creative ways to exist in the digital environment. For most, this should include a full-scale, digital mortgage platform.