The ongoing pandemic has definitely caused homebuyers to turn to virtual lending in order to secure funding for their dream homes. But the truth is getting a home mortgage online always made sense and is now easier than ever.
In This Article:
- Why Virtual Lending became a thing?
- What are the benefits of getting a home mortgage online?
- How are people adjusting to virtual lending?
- Is in-person or traditional lending outdated in today’s world?
- Why is online lending here to stay?
There are many people who are looking to buy a home during the COVID-19 pandemic; however, given the public health crisis that the pandemic has created, some potential homeowners are finding it difficult to go about buying a home in the traditional manner. As a result, banks and credit unions have woken up to a major shift in society as they have had to catch up to the digital age.
Right now, there are record numbers of people who are looking to buy a new home or refinance due to the massive rate cuts that the government has instituted in an effort to jump-start the economy. At the same time, without virtual lending options, banks and credit unions might miss out. This has led to a growth in virtual lending choices.
Lending Is Going Virtual
Long before COVID-19 changed the world, virtual lending was there. Busy people dealing with everyday life, families, school, working, and more, were in need of more living space or a new home but simply did not have the time to go door to door looking for a mortgage lender. As a result, there was definitely a major shift in the lending world, from in-person to online. Moreover, now with the current state of things, many homeowners and potential homeowners are taking advantage of virtual lending options.
Benefits of Online Lending
For some time now, home buyers have wanted to hurry the home buying process along. In other words, No one likes waiting anymore. Well, the good news is that many of the steps that were involved in securing funding and gathering paperwork, etc., can now be quickly facilitated online. In fact, some of the major benefits of this virtual lending process include instant pre-approvals, constant access to status updates, and even the ability to upload and sign documents in a virtual manner.
What’s more, now that the home shopping process starts online, it only makes sense that it should be easier for potential home buyers or borrowers to be able to find lenders in the same place. As a result, now potential homeowners are able to use the virtual world to compare offers on mortgages. This means that you can quickly compare rates, programs, and available services with a few clicks of your mouse or with ease on your smartphone. The reality is that speed and simplicity are two of the biggest perks when it comes to online mortgages or getting a mortgage through virtual lending. Moreover, the proof is in the pudding, with dramatically reduced closing times.
In addition to making it easy to compare lending and historically low rates, getting a mortgage online helps people who are going green. Think about it, in today’s world, with many people working from home and people opting to go paperless, being able to import loan documents digitally is a big plus. In most cases, an applicant or borrower can access all their info online—including employee pay stubs, bank statements, W-2s, tax returns, proof of assets, and so on. A good number of online lenders also let borrowers e-sign (digitally sign) a variety of important documentation required for a mortgage. Being able to sign certain documents virtually is a bonus because unsigned paperwork is often a common reason why mortgage transactions get delayed.
Customers Are Making An Adjustment As Well
It is important to note that many customers are making an adjustment in the manner in which they pursue loans. Remember that many of the people who are going to be helping potential homeowners navigate the mortgage approval process are working virtually as well. Therefore, it is critical for customers to take steps to protect their data. When banks and credit unions place the safety and security of their potential borrowers first, this is going to lead to higher customer satisfaction rates. Moreover, the growing preference for this online approval process is definitely a clear indication that the virtual lending process is here to stay.
What About In-person Lending
With people getting pre-approved for the home they want faster and being able to upload application documents securely online, sign digitally, plus avoid missed-paperwork delays, it is no wonder that getting a mortgage through virtual lending is striking a chord with the largest segment of the US population—millennials. Right now, most millennials are hitting their home buying prime, and they practically live their entire lives online. In fact, younger home buyers want their mortgage experience to include a combination of high-tech and human touch.
Furthermore, recent studies have indicated that more than 30 percent of people use online platforms to apply for loans, and almost 30 percent prefer an online application for a mortgage or refinancing. Now with nationwide lockdowns, social distancing, and even busier schedules than before, “digital mortgages” are definitely a must. Thus, despite the fact that in-person lending is not going to become obsolete anytime soon, virtual lending is definitely leading the charge, and more and more people are here for it.
The Future is Bright
Digital mortgages and virtual lending show no signs of slowing down. Moreover, with the reduction in mortgage processing times for both refinances and purchases, getting a mortgage via virtual lending absolutely has its perks, and right now with record-low rates, it would be insane to pass up on your dream home purchase because you cannot lender shop in-person.
That said, whether you choose to apply online or offline, you’ll still need to meet the lender’s requirements to qualify for a mortgage. And remember that rates vary by company. Just because a lender is the fastest doesn’t mean they’ll be the cheapest for you. Thus, at the end of the day, it’s important to weigh convenience against rates and fees when choosing a lender online or in-person.
Ready to Apply For a Mortgage in WA, OR, CO, or ID?
Do you have questions about home loans? Are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages.