In a survey by ICE Mortgage Technology, 99 percent of lenders believed that technology can change the mortgage process for good. 74 percent said the simplification of the mortgage application process was a key benefit. They are not alone either. CREtech’s 2019 report highlighted record-breaking VC investment into proptech companies – a staggering $31.6 billion – and the trend of investing in real estate technology is set to continue. With the pandemic accelerating the adoption of digital habits, consumers are looking to property finance companies to provide a dynamic online experience to their mortgage process or help them invest wisely in real estate. In response, the property finance industry is abuzz with technological introductions, all aimed at transforming the financing landscape for consumers, real estate investors, and even brokers.
Prequalification Calculators And Tools Bring More Planning Clarity For Applicants
The introduction of pre-qualifications tools has helped applicants be more informed during their mortgage applications. For instance, mortgage applicants can now use websites like Trulia to get home loan options and their average quotes. The quotes are personalized as well, using your credit score, borrowing amount, and other criteria. For instance, veterans can now use a VA mortgage calculator to preview their options for cash-out refinancing, and whether they could save money with a new mortgage. The progression in comparison shopping for property finance options means consumers can make better choices, and stand a better chance of being approved.
Technology is also changing the game for real estate brokers. Recently, BlackKnight LLC announced Loansifter PPE, its latest version of the platform with added features. The platform now gives real estate investors access to over 120 lenders and a modern interface that allows them to re-price and save pricing scenarios.
Cloud-Based Mortgage Application Software Speeds Up Process
One of the most common complaints about the traditional mortgage application process is the length of time it can take. Technology like Blend is looking to change that. By allowing mortgage applicants to simultaneously link to their supporting documentation, including pay stubs and bank statements, the cloud-based software has dominated the mortgage tech landscape since its introduction.
Termed a ‘mortgage origination software platform’, Blend counts property finance giants like Wells Fargo, US Bank, and M&T Bank as clients. It has also recently raised $75 million in series F funding, and begun broadening its support to include personal loans, refinancing, and credit cards. By providing a streamlined space for consumers, lenders, and real estate agents to all connect with each other, Blend helps to eradicate time-consuming tasks and speed up the process from application to decision.
Investment Platforms Simplify The Selection Process For Real Estate Investors
Real estate investments presented a unique opportunity for investors during the pandemic. With many households saving more during the last year, many of them have turned to investments. Fintech companies like Cadre have recognized this, and have moved to capitalize on the change in direction by launching a $400 million fund for underrepresented property investors. However, this is not the company’s first foray into the world of real estate investment. The platform allows investors to browse and select professionally curated portfolios of commercial real estate, taking the hassle out of the process for passive real estate investors.
They are not alone either. There are also alternative platforms like Roofstock, which is a real estate marketplace for everyone in the residential and commercial real estate space. Not only is the company helping real investors find opportunities, but it is simplifying the finance process by amalgamating property investment tools and resources to help all investors – from the tech-savvy ones to the more traditional investors looking to build a nest egg. It has also introduced fractional real estate ownership – an alternative but more affordable finance model for real estate investors.
Whether it’s the mortgage application process, real estate investment financing, or the availability of resources for the refinancing process, there’s no denying that the property finance industry is being overhauled by technology. The digital era is here, and the property finance industry is moving ahead at full steam.
