Today’s Technological Impact On Mortgages

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The Federal Savings Bank shares a report on technologies impacting the online mortgage process.

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First-time home buyers and even current homeowners looking to invest in another house can now use the Internet to help determine which lenders have provided the best services for consumers.

Technology has continued to become a more integral part of our lives and it's no surprise that it's beginning to influence the real estate industry as well. The Federal Savings Bank was intrigued by a recent July 6th report by Trulia, an online real estate company, highlighting the process of looking for a mortgage is now entering the digital marketplace.

Technology will improve the mortgage industry
Because young, interested first-time home buyers use technology so often for everything from remaining connected with friends and loved ones to catching up on news and current events; integrating technology into the mortgage industry will help these individuals as they decide to invest in their first homes.

According to National Mortgage News on January 2nd, online mortgage applications will help drive overall housing activity in 2015.

Online reviews of mortgage lenders
First-time home buyers and even current homeowners looking to invest in another house can now use the Internet to help determine which lenders have provided the best services for consumers.

This can give easy access to valuable information that can help interested buyers determine which lender will best fit their needs.

Calculator and tool development
In addition to gaining access to the ratings and reviews of professionals in the real estate industry, interested home buyers can also use calculators and prequalification tools to determine what kind of home loans they might qualify for and even the interest rate.

"Six years ago, I would have had to pull out all my matrices and compare LTV [loan to value] and FICO credit scores and requirements for each borrower, then contact the rep for rates on each program and hope they'd get back to me within 24 hours," Mark Renoso, a senior loan officer, told Trulia.

These tools and mortgage calculators allow interested buyers to first become a bit more familiar with what they can afford and what will impact their loan size. For example, access to a mortgage calculator has the potential to encourage individuals to save a more substantial amount for a down payment or cut down their credit card debt to improve their chances of being approved for a home loan.

Application development
Smartphone apps are another example of how technology continues to improve the homebuying process.

"A recent client spent a month between the sale of their previous home and the purchase of their new home traveling the country in an RV," Eric R. Croll, a senior loan adviser for RPM Mortgage told Trulia. "RPM's technology allowed us to handle the loan requirements for the new purchase via their smartphone as they traveled."
With the development of an app, homebuyers and real estate industry professionals will be able to continue working toward closing no matter where they are.

Online applications available
In addition, the mortgage industry will also likely experience more online applications which will make the application process more efficient, The Federal Savings Bank already offers this on their homepage.

E-signatures will quicken the pace of the mortgage application and ultimately make the home buying process faster as well. The paperwork is one of the more time consuming aspects of buying a new home.

"The new technology helps keep us compliant," Croll noted, according to Trulia. "With ever increasing regulation, we could waste much of our time keeping track of how many days we have to send, receive, sign, or disclose various items to the client in order to operate within those regulations."

This will especially be helpful with the implementation of the TILA-RESPA Integrated Disclosure rule.

Technology and TRID
The TRID rule is coming and technology will likely help real estate professionals and consumers adapt to the new regulation easier.

Workflow redesign and training will be extensive and technology will help those in the industry connect and allow cohesive training and partnership as the regulation is implemented.

Contact the Federal Savings Bank, a veteran owned bank, to learn more about mortgages.

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Giorgio Urbano Ferrero
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