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The Hi-Tech Future of Mortgage Applications

Author: Michael Davis

As the digital era revolutionizes our daily lives, cutting-edge platforms are transforming virtually every corner of consumer behavior (see How Apps Are Changing The World). No industry is immune from their effect – not even the traditionally conservative banking and mortgage brokerage sectors.

The prospecting homeowner has come to expect an easier, faster way to get things done. Simply searching for housing online via home hunting apps (see Best Real Estate Apps For House Hunters) is no longer enough. Millennials (lenders' largest demographic), in particular, are conditioned to find all of their res digitally; comfortable sharing confidential data online, they expect savvier services from lenders.

Progressive lenders have responded by implementing tools that provide consumers with unprecedented control and flexibility over their mortgage applications and tracking, at a fraction of the usual cost. Bottlenecks notorious for slowing down the process are being addressed with new and improved procedures that leave traditional offices, face-to-face interaction, phone calls and physical documents in the past. Digitization enables users to complete the entire financing process online, even signing documents electronically.

Whether you're buying your first home, a second home or refinancing your current mortgage, you can now obtain a rate quote, loan pre-qualification and mortgage via your computer (or smart device) – from pretty much anywhere on the planet with an Internet connection. Here are three forerunners in the brave new world of online lending.

Xome

Created by Nationstar Mortgage Holdings, Xome's sleek digital platform re-imagines the real estate buying experience from start to finish. Though primarily a listings service (for properties to sell, buy or rent), it also offers a one-stop shopping experience: Purchasers simply swipe and click their way through offerings, and then select a real estate agent, apply for a mortgage and track the status of a loan/purchase contract via their dashboard.

vLoan

Something of a Match.com for mortgages, vLoan partners clients with their ideal loan. Backed by long-time lenders Union Home Mortgage, vLoan completely digitizes the entire experience with a four-step process that walks first-time borrowers, new-house borrowers and refinancers through the entire application and qualifying procedure, with a typical turnaround of just 21 days from initial rate quote to loan closing.

Lenda

Much like the lenders' answer to Turbotax, Lenda completely eliminates the mortgage middleman. The platform promises to underwrite, appraise and close a loan with a start-to-finish process that Lenda claims is three times faster than the industry average. It also provides borrowers with a free quote in mere seconds and eliminates all paperwork within a processing period of around 45 days.

The Bottom Line

Traditionally, obtaining a mortgage has been a drawn-out, complex process. But now the industry is undergoing a fundamental shift towards online lending. Though initially slow to adapt to the digital world, it's swiftly catching up with a number of platforms designed to electronically manage, simplify and streamline the process. They provide an exciting glimpse into tomorrow's hi-tech (paperless) mortgage future.

As a result, home loans have never been more accessible, economical and less daunting to obtain…and that's only going to evolve with time as sophisticated direct-to-consumer tools proliferate. Borrowers everywhere can now look forward to owning their dream home faster – and with fewer headaches – than ever.

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