How has technology transformed the mortgage application process?
In the last 10 to 15 years, many of the processes we go through to make big purchases (like a car or a bank loan) have largely moved online. Applying for a mortgage is no exception; in fact, the existence of online mortgage brokers has changed the application process for the better.
Read on to find out how technology and the Internet has made the mortgage application process much easier and more accessible for all.
Main differences
You may not be entirely sure what a mortgage broker does, especially if you're a first-time buyer. In layman's terms, they work just like a comparison service; by finding and comparing mortgage deals that suit your needs, mortgage brokers help you save as much money as possible.
Before the popularity of online mortgage broker services such as Trussle, those looking to buy a house would have to go visit a broker. This proved to be inconvenient - having to rearrange your work schedule to visit your broker wasn't an option for many, and you'd often end up having to make several visits.
In comparison, online mortgage broker services mean that help is just a few clicks away, day or night.
However, this convenience doesn't automatically make online services the better option - so let's examine some of the other ways in which the mortgage application process has been transformed by technology.
Benefits of using an online mortgage broker
In the US, millennials have been buying more homes than any other generation and, as the first generation to grow up with the Internet, online mortgage brokers have been a staple. Beyond the obvious factors of convenience and saving time, online services have two main benefits to the buyer.
1. They encourage responsible lending
Responsible lending is something that all lenders and brokers should be committed to, in order to ensure that clients do not fall into unnecessary debt that they're unable to repay.
Online mortgage brokers make the process of responsible lending easier by utilising mortgage calculators. You'll be able to figure out exactly how much you can borrow without plunging yourself into financial problems, and you can find a broker here.
2. Your paperwork is secure
When you apply for a mortgage, you'll need to prove you can afford the repayments with a lot of paperwork including at least three months of payslips, proof of identity, and bank statements.
When dealing with this stuff in person, there's a chance that documents will be lost - when this is something like your passport it will be a major inconvenience. You may also fall victim to missed paperwork delays, pushing your application back further.
Using an online service, your important documents are saved as digital uploads rather than physical copies. Not only is your paperwork secure, but you're much less likely to have delays in your application. Some online services will even let you e-sign your paperwork so the process is even smoother.
Overall, the mortgage application process is just one of many areas that have been transformed through the use of technology and the internet. Buying a house has never been more simple than it is now.
