In the past, getting a mortgage almost guaranteed a stressful and frustrating experience as the process often uncovered hidden costs and inefficiencies that would undermine borrower expectations. Unfortunately, that’s still the case for hundreds of thousands of people, as many lenders have yet to adopt a digital platform. Instead, these lenders are relying on old, outdated, paper-based systems that struggle to keep up with today’s rules and regulations. It’s an epidemic, and the costs are being transferred to you.
Relying on an antiquated system not only exposes hidden inefficiencies, but also unearths many unaccounted-for costs. At cloudvirga, we have streamlined the entire process through the creation of our intelligent Mortgage Platform® (iMP), resulting in a less costly, more efficient and an overall more enjoyable experience for borrowers and lenders alike.
Interest rates may be at all-time lows, but the massive costs that lenders incur are being passed down to borrowers, which ultimately raises the cost of a mortgage significantly. Here are a few issues to look out for when getting a mortgage:
Paper-based systems
One massive problem holding the mortgage industry back has been the reliance on paper-based systems. With paper documents, there’s a higher chance for human error. Like in a game of telephone, as information goes from one person to another, it often gets changed or altered. The same goes for mortgages. With more hands touching the loan, the odds for information to be altered or inputted incorrectly increases significantly.
Over the years, as other industries embraced new technology, the mortgage industry held on to its archaic ways, causing massive delays. As a result, processing a mortgage still takes over 40 days for many lenders.
Delays in communication
The mortgage process has dozens of moving parts, and it’s difficult for many companies to make sure everyone is on the same page. Mistakes can happen at any point as the loan file moves from one person to another.
Typically, a mortgage requires input from the consumer, loan officer, processor, underwriter, disclosure desk, title company, buyer’s agent and many more, which is why it’s so common for mortgages to take so long to complete. Digital systems allow for continuous visibility and transparency, so there’s no delay between parties.
Regulations/Compliance
Lenders are flocking to digital platforms like cloudvirga’s iMP, as new governmental policies require more and more time to ensure regulatory compliance. Since the housing bubble collapse in 2007, there has been an enormous increase in regulations to ensure safe lending practices. Most of these regulations don’t demand an extension in closing date, however, many times it takes companies longer to adhere to regulations/compliance, which ultimately delays the process.
Many of these frequent delays and costs are a direct result of using old, outdated platforms in a world where technology is evolving so rapidly. Digital platforms are the solution to the nightmare processes that many still use today and can reduce the time it takes to process a mortgage to just a few days.
Contrary to what some may think, frustrations, stress and long closing times are not mandatory. When looking for lender, chose one that puts your satisfaction first and invests in their ability to do so.