Everyone knows how grueling applying for a mortgage is. Despite the industry already investing heavily in new and better technology to help make the process efficient, a lot of borrowers still go through the eye of the needle when it comes to applying for a mortgage. Many financial organizations are now feeling the need to improve the user experience for their borrowers. If not, new borrowers are very willing to go anywhere that offers a better user experience – even if they have to risk an important financial decision and put their trust in an unknown financial institution.
Digital natives have grown accustomed to having their daily lives deeply intertwined with their digital presence. An on-demand lifestyle results from this phenomenon. Despite the common assumption that Millennials are not buying homes, they have surpassed the previous generation, Generation X, as the generation with the largest share of loan by dollar volume.
As it stands, Millennials prefer applying for loans online as there is a common belief that online transactions are far quicker than in-person ones. To them, mortgage lenders have a set of requirements before they even consider working with them which includes:
- personalized customer attention
- immediate response and process
- efficient and trustworthy technology
- easy-to-use apps and interfaces
Unfortunately, a good majority of lending companies find it hard with a speedy and efficient process. They simply could not keep up with other online lending companies. Many of these lenders are stuck with their old ways and continue to rely on traditional methods for their record-keeping such as manual spreadsheets and legacy databases.
In this kind of scenario, no one wins. The external customers become disappointed and frustrated by the snail-pace process and inefficient experience. Meanwhile, the internal customers such as underwriters and loan processors also lose potential business.
It’s important that mortgage companies strive to improve their process to keep internal customers while retaining their external customers.
How do they go about achieving this?
A good majority of financial organizations already realized that improvement in their back-office needs to be a top priority if they want to improve their customer experience. Low-code technology makes it possible for just about anyone, regardless of their technical skill level, to very easily build and then implement the business software they need in order to track, automate, and manage the process without having to change the existing legacy systems.
Some lenders consider this new technology as their secret weapon. It is an effective way for them to transform the back-office by creating a centralized tool that is able to connect with all of the existing systems, automates all processes, streamlines the work, and triggers workflows. In addition, businesses don’t need to rely on IT in order to build it. Through low-code, it’s possible for anyone to create the software that they need using an easy-to-use drag-and-drop interface and to invest with hard money lenders.
BENEFITS TO INTERNAL CUSTOMERS
For mortgage brokers, an improvement in the back-office process will mean:
1. Faster processing of loans
When it comes to loan recommendations, the wait isn’t as long. However, the time to process can be grueling, between 10 to 15 hours. With the use of low-code technology, that time can be further reduced and therefore free up brokers to attend to more important matters like sales and customer relations.
2. Overview in real-time
Low-code technology also offers an intuitive interface that allows loan processors and brokers to keep an eye on all processes.
3. Operating cost is decreased
Because brokers, as well as their team members, have more time to focus on the human-powered aspects of the loan process, their profits significantly increase due to the technology.
4. Data continuity
Without accuracy, back-office efficiency becomes useless. Thanks to low-code technology, it’s now possible for businesses to decrease the chance of human error. It also helps brokers in maintaining good business practices.
BENEFITS TO EXTERNAL CUSTOMERS
For individual borrowers, a more efficient back-office means:
1. Faster approval of loans
How fast their loan application gets approval plays in the overall experience and the new technology can speed up the process by significantly decreasing the manual paperwork that needs to be filed.
2. Increased trust in institutions
An efficient loan application process will also lead to better data integrity and accessibility which only helps to promote trust and peace of mind in lenders.
Anthony Blair loves to share tips on personal finance management and investment strategies. He is currently working with DFW Investor Lending, which guarantees to help to Invest with hard money lenders.