The Future of Mortgage Banking?
Those of us who remember typing DOS commands into PCs, waiting forever to establish 9600 baud Internet connections, and carrying a brick-sized phone in our cars know that mortgage financing has come a long way. From completing applications by hand to waiting for a processor to call our employers, check our credit references, and make sure we didn’t bounce any checks, to getting an appraisal (also done by hand), and finally to holding our breath for an underwriter’s decision, the process was extended and exhausting. Shopping for a mortgage? And going through all that more than once?! Not likely.
Today, underwriting is largely automated, credit reports can be pulled in a few minutes, appraisers use digital technology and special software, and lenders’ rates and terms can be compared easily online. And we are getting increasingly comfortable with this technology and we demand the speedy decisions it affords. According to Realty Times three quarters of us check rates online and over 80% of us would be willing to complete a mortgage application online.
Technology has made the process more efficient and less expensive. Customers get faster approvals and pay less. Those of us most comfortable with technology and the Internet can use them to gather information, shop for a great deal, and complete our mortgage applications — without wasting gas driving all over town.
