JSMedia – Online lenders are giving homebuyers an advantage. These technology-based mortgage companies have expanded their market share rapidly since the Great Recession. They are able to provide better terms and faster closing times than traditional lenders. Furthermore, their high-speed processing and lower default rates are helping borrowers save money and time. And while not all millennials are ready to ditch their bank accounts, they may want to consider fintech mortgage options.
While traditional lenders still dominate the mortgage industry, there are a variety of new players that can help borrowers. For example, a tech-based lender can process mortgage applications 15 days faster than a traditional lender. Another benefit of tech-based lenders is that they can handle a larger volume of applications. For a traditional lender, doubled application volume increased processing time by 7.5 days. But fintechs can handle an increase in volume and still maintain the same quality.
A major benefit of modern mortgage lending is the ability to manage mortgage loans online. Millennials use their mobile devices to interact with every service. This means that a mortgage company must be able to deliver a smooth and fast online experience. The best fintech lenders will be able to provide customer support at the push of a button. And, a user-friendly dashboard is another big advantage.
How Fintech Lenders Give Mortgage Borrowers an Edge
Digital experience is sweeping the business world, and the mortgage industry is no exception. A modern millennial wants a lender that adapts to their needs, is reliable, and offers a seamless online mortgage experience. Moreover, they want a lender that can handle information security as well as personal privacy. With this in mind, fintech companies offer a more convenient and secure way to borrow a mortgage.
Moreover, they must provide a clear and transparent online experience. Millennials are notorious for being indebted and are likely to use their credit cards to make payments. The more transparent a mortgage lender is, the better their chances of attracting them to their site. It should also offer real-time account information. They are also a good resource for mortgage borrowers. A fintech lender’s website is the best way to reach a millennial.
It is also important for mortgage lenders to make their websites easy to use. Consumers are often hesitant to go online and fill out forms on their own. But with a digital mortgage, you can fill out these forms quickly and securely, and it won’t take long for a customer to see their personalized loan details. The same principle applies to the process. A new user experience gives borrowers an edge.
The emergence of new technologies has made it easier for borrowers to choose the best option. With more transparency and a positive digital experience, a fintech lender can provide a better loan to its customer. Besides, the benefits to borrowers are numerous: They don’t have to live with the mortgage company’s policies and procedures; they can customize their loan to meet their needs. They can even offer mortgage services through mobile devices.
In addition to providing a better customer experience, a fintech mortgage solutions platform can streamline the mortgage process. Its platform integrates with the loan origination system of the lender and enables streamlined communication between lenders and borrowers. This helps reduce costs and speed up the loan approval process. The best way to utilize a fintech solution is to learn about its capabilities. It is possible to use the same technology used by traditional banks to streamline processes and provide services to borrowers.
The emergence of fintech platforms has also boosted efficiency. LendingClub, for instance, automates manual tasks by providing borrowers with a mobile-optimized mortgage experience. The Floify portal enables borrowers to upload documents and e-sign disclosures, while ensuring communication between loan originators and borrowers is improved. The lender can easily update borrowers about the status of their loan, which keeps referral partners sending business to its website.