Change is the only thing that is constant in this world. Technology too is changing. It is evolving at a rapid pace. As a result, it has helped shape a lot of industries in modern times. And, this also includes the banking industry. You might have noticed that financial services that people use every day have improved a lot. This is a direct result of that change. Now, this has led to a drastic change in the application process for how you get home loans. Not only has it become easier to apply for a home loan, the process has become faster and smoother as well. Let’s take a look at how technology has helped people to get home loans easily.
So, one of the biggest hurdles someone has to face while trying to get home loans is application assessment. It helps decide whether someone who has applied for a loan is worthy of it or not. This process is manual. So, it often takes days to finish this process. Now, thanks to technology, this process is taking place instantly. Whether or not a home loan fits you is something that new-age tech can help figure out in seconds.
Financial institutions can right away point out if you can get a home loan based on their credit policy and other regulations. This has been of immense help to brokers and banks. In case they want to change any of their policies, they can do it right away and it will be reflected in real-time.
Valuation data too has improved. In this market, if you want to get home loans, lenders will need to assess your property’s worth. This would normally mean that a valuer would have to visit the property physically. They would have to examine it manually in order to denote a value to it. In order to sanction a home loan, the correct value is assigned to a property. So, this is an important part of the home loan process.
But now, thanks to advancements in technology, lenders can use valuation tools to figure out an estimated value of a property. So, now lenders can perform automated desktop valuations. While doing so, they will also be informed right away if there is a need for a curbside valuation.
Consumers too can access these tools in order to get a better idea about their own property. In case someone wants to buy a property and want to take a home loan for it, they can check out the valuation in order to do their own math.
Modern financial technology has allowed people to set up online money lending businesses. This includes independent companies as well as well-known banks who offer both offline and online home loans. Loan application processes are steadily moving online and it is an easier process as well. On top of all this, if you apply for a home loan online, chances are you will be getting better interest rates and improved service. Plus, it’s convenient because you can apply for the loan from any location. There’s no need to go anywhere and the entire process is a seamless one.
Optical Character Recognition
One question that still remains is that how will one verify scanned documents. However, technology has an answer for that as well. Using optical character recognition, lenders can go through copies of all documents to retain every information. Home loans usually involve a lot of paperwork so this piece of tech surely helps save a lot of time for both parties.
Electronic signatures have also become pretty popular in some countries. This service helps both the lenders and the borrowers to send electronically signed documents to each other. It saves time as well as money since there is no postage nor traveling involved.
In order to verify the financial credibility of an applicant, lenders can tie up with financial software partners who can help retrieve bank statements. Login credentials are usually destroyed after a few seconds for security reasons but it helps the lender get a verified bank statement. This helps the lender to make a decision in a matter of minutes.
Identity verification too has become an online process now. And, along with all this, banks and other financial institutions have rolled out e-KYC processes that minimize the time taken to get a loan.
What Does This Mean For You?
This means that applying for a home loan is extremely easy. Approval takes a really short time so it gives you more time to assess your options. Moreover, this technology is going through rapid changes. So, you should expect significant changes that will make this process even better in the near future. So, you can fully expect that applying for a home loan will become as easy as online shopping in a matter of years.
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