August 5, 2016
Mortgage rates are at near-historical lows. Even without the far ranging impacts of the recent Brexit (which the market is slowly correcting for), now is a great time for people who need to get or refinance a mortgage. But surprisingly, very few people are doing so.
According to Black Knight Data & Analytics, nearly seven million people are not taking advantage of the current low interest rates by purchasing or refinancing their homes. Consumers could be saving at least $200 a month, so why are they not doing it? “Many believe there is a stigma that this will take extensive time and ample paperwork that busy family just do not want to deal with,” says Tri Nguyen, founder and CEO of Network Capital.
However, that is far from being true. With today’s technology, consumers can get refinanced in less than 15 days and, to learn more about how this lenders are leveraging tech to expedite the consumer borrowing process, Nguyen shares his expertise, given that his company partners with companies like Cisco, Microsoft, SQL and Skype to create a painless lending experience.
Online Lenders Trump Traditional
In terms of speed and efficiency, online lenders are simply better than brick-and-mortar institutions. And that is not to say direct lenders cannot give superior customer service – they can execute sophisticated interactions with customers which are near equivalent to speaking with someone in person.
In monetary terms, lenders are able to compete against cash buyers and meet close of escrow deadlines. Online lending helps flatten the playing field, giving prospective homeowners “same as cash” buying power. “The only portion of the loan that would be needed to complete the process is an acceptable property. Potential homeowners can then go shopping confidently,” explains Tri.
Enterprise Software Meets the Consumer
Lenders have sophisticated enterprise software partnerships that allow them to securely download most required data to fill document needs from the borrower. With this expedited process, lenders can sometime close a loan within minutes. The automated process eliminates the arduous, slow, and often inaccurate task of completing paperwork by hand. Nguyen explains:
“Additionally, technology allows us to place our clients in the best program. However, there is more to that than meets the eye. We take into consideration our client’s short and long-term goals, as well as current and future financial snapshots to plan the best program possible. This allows our company to explore all avenues and majority of the time sparks new ways to save that the client did not even know was an option.”
Create Competitive Pricing
With so many options, consumers are constantly on the hunt for a deal. There are hundreds of options when seeking home loan lending, from city to country and across the world. While some may say less and less people (ahem, millennials) are purchasing homes, the competition in this market is still fierce.
Borrowers must do their research, make sure their fees are a low as possible. One way companies keep those fees at a minimum is streamlined processes that are created through advanced technology. “We partner with companies like Cisco, Microsoft and Skype, to provide optimal performance that create savings we pass on to the customer,” says Nguyen.
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