Published on November 10, 2015
While it might be advertised as a simple solution that doesn't require the paperwork and burdens that may accompany applying for a U.S. home loan, a digital mortgage should still be approached with the same seriousness, commitment and research as a conventional mortgage.
In addition, it is critical to be financially safe, as a higher number of transactions occur online. Sending and uploading personal information online should not be done without first establishing trust in the website.
Financial security in the age of the Internet
According to LendingTree, consumers should actively monitor where and with whom they share information.
"From the many headlines of recent data breaches, it's clear that our personal and financial information can be easily exposed in this digital age so it's more important than ever to monitor your credit for protection against fraud," said Andrea Woroch, LendingTree's consumer-savings expert. "If you notice a significant drop in your score or feel your score is low for inexplicable reasons, that may be a sign of potential fraud."
"Individuals should be cautious whenever working with a lender - especially online."
Individuals should be cautious whenever working with a lender - especially when it is done online. Consumers must ensure any digital mortgage companies they decide to work with are reputable. A little research beforehand can better ensure individuals avoid potentially problematic situations where personal information is compromised during the loan application process or applicants wind up paying far more for a loan product than they should.
The paperless appeal may not be worth sacrificing professional assistance
Chicago Financial Services, Inc. noted that while eliminating paperwork may seem appealing to many interested buyers, the expertise, experience and customization of a mortgage experience is eliminated.
When individuals enlist the help of a professional loan officer, they are able to tap into the experience and knowledge that individual has within the industry. Professionals' understanding will promote the most savings, the best interest rate and a smooth loan approval process. In addition, interested borrowers can feel supported throughout the process as they can contact their loan officer when and if questions arise.
This support and transparency is especially helpful for first-time homebuyers who may feel unsure and confused when navigating through the application and homebuying steps.
Benefits of a loan officer
According to Forbes, loan officers have more resources available to them, making it more likely for a consumer to secure a lower interest rate when applying for a home loan.
Working with a professional instead of applying online without the assistance of a human being provides consumers with personalized assistance throughout the entire loan application process. The expertise and understanding loan officers can provide will better ensure consumers apply for the appropriate loan with a more complete understanding of the terms and conditions associated with the mortgage.
If an interested borrower is looking for advice for loan application, the Internet has a plethora of information. However, a professional with experience in the industry can also provide especially valuable information and advice. By requesting the help of a loan officer, individuals can improve their chances of getting approved for a home mortgage.
While the industry may benefit from a simplified loan application process that embraces modern technology, consumers should not lose the expertise offered through a professional with knowledge and experience within the field. These components are critical to providing consumers with a positive experience that ensures they get the best and most appropriate deal.
U.S. News & World Report also noted many loan officers provide special expertise that cannot be provided through a digital mortgage. This is especially important when consumers are seeking a unique loan. For example, if a consumer wants to apply for a jumbo mortgage, utilizing the expertise of a loan officer who has a great deal of experience working with individuals applying for this type of loan can ensure a positive application experience.
TRID and digital mortgages
In some instances, a digital mortgage can offer some benefits. The TILA-RESPA Integrated Disclosure regulation has officially been implemented for those within the mortgage industry. Since Oct. 3, the rule has impacted loan officers and consumers looking to invest in a new home.
"While there are benefits to adopting modern technology, there are still some issues that may arise."
According to Housing Wire, a digital mortgage can streamline the lending experience for customers while accommodating the new regulation. Because more time is provided for customers to review the terms and conditions of a loan, the likelihood of a delayed closing may increase. Therefore, ensuring an efficient and quick transaction can help a great deal.
However, while there are benefits to adopting modern technology, there are still some issues that may arise. The paperwork required for application is still required, and not having a clear understanding of what needs to be submitted can lead to confusion and delay. With a professional loan officer, consumers can call whenever they have a question regarding the paperwork that has been submitted.
Appropriately using technology
Great customer service remains a top priority for those working in the lending industry. Therefore, simplifying the loan application process and offering modern solutions to frustrations when applying for a loan should be priorities.
With appropriate research, a full understanding of digital mortgages and partnership with professional loan officers, those working in the industry can provide a better loan application experience for consumers.
Digital technology can improve how tasks are completed in many ways, but it is still important to utilize the assistance offered by industry professionals.