Today’s mortgage application process is sleek and efficient. If you ever applied for a mortgage in the bad-old paperwork days, today’s mortgage process is a dream. Gone are thick file folders with reams of forms and intimidating conversations with a loan underwriter, not to mention waiting weeks for approval. Here’s a look at some modern improvements.
The online (and on-time) mortgage application
The most obvious change is not so recent. For a decade or more, mortgages have been applied for entirely online. The application is an online form, and the required documents must be uploaded as PDFs. You sign the application digitally. This saves time from writing applications by hand, copying financial statements, and delivering them to the mortgage company. Online updates save time spent on the phone.
Nowadays, you can track the loan status from your computer or smartphone. Notifications pop up by text or email, keeping you informed of the process.
Faster decisions
After the mortgage application and supporting documents are submitted, automation assists the underwriter in handling your file and making a decision. Algorithms correlate and analyze credit scores, employment history, and other factors to perform an underwriting risk assessment for the loan. It is faster and unbiased, eliminating the potential for human judgment error.
Borrowers are notified via automated texts or email of any additional documents needed, when the loan is in process, and of other steps along the way. Online representatives or AI agents can field customer inquiries via a chatbox.
Is it safe?
One question that might arise is whether the mortgage application process is secure against hackers seeking to steal your sensitive financial information. While you can never say never, financial institutions invest millions in cybersecurity to protect their customers. Robust encryption, strong passwords, and verification codes help keep your sensitive data secure.
Related – Written Verification of Employment: A Crucial Requirement for a Mortgage
