Many mortgage lenders today are breaking out of the mold, reshaping themselves and their strategies to the demands and opportunities of a new lending age. While traditional lending giants still rule the kingdom, these lenders are definitely making a significant disruption, and potentially ushering in a big change for the whole lending industry.
Of course, lenders are not the sole players in the game. While modern lenders seek to shorten the time of loan processing and underwriting which has always been a major issue in traditional mortgage acquisition, brokers are also finding new ways to reach out to their consumers while non-bank lenders are offering new waves of solutions to many credit-challenged borrowers.Find a lender today.
The role that these players take part in modern mortgaging is made even more significant by the fact that some giant players are slowly losing market share due to increasing legal risks and more regulatory hurdles.
This void is now being filled by modern real estate players who leverage technology to create modern business models that capture the shifting needs of the consumer market.
Streamlining the mortgage process: an online approach
In the traditional model of mortgage acquisition, it usually takes around 36 to 72 hours before your mortgage application gets approved. With tech-integrated models, the process becomes significantly streamlined with some companies promising near real-time approval of loans.
This new process slashes out a) manual underwriting and b) face-to-face applications since all of the steps are now done online.
The companies’ use of algorithm instead of manual labor is bringing down costs by thousands of dollars, which eventually is cascaded to borrowers, lessening origination and underwriting costs.
Mortgage middlemen: helping lenders and borrowers alike easily
When a borrower enters a rate or mortgage search online, the information they usually get comes from online mortgage brokers. These middlemen serve as lead generators for lenders who originate the loan. These are those sites that take your basic personal info and present you with choices of lenders. Once the shopper decides to do business with one of those lenders, the website receives a fee as commission.Check out today’s rates.
Non-bank lenders offer mortgages to borrowers with non-stellar credits
The growing conflicts with regulation is causing lenders to limit their offers to standards set by the Qualified Mortgage Rule. As big players strive to abide by the new rules, riskier, often small-time lenders step in to fill the void. Most of these mortgage lenders are non-banks and are local businesses. Because they face fewer regulations, they have more freedom when it comes to originating Non Qualified mortgages. Included in this roster are your neighborhood credit unions who often have better terms and interest rate offers than most conventional banking lenders.
With the emergence of these alternative mortgage lenders and professionals, it’s never been easier to get a home loan.
But before you tackle the question of who, learn first if you should or if it is the right time. Purchasing a home is an expensive decision – perhaps the biggest one in your lifetime. Getting one entails careful consideration of your finances and not just the availability and accessibility of a lender.
If you think you are ready, talk to us and we can guide you through your own journey to homeownership.Click to See the Latest Mortgage Rates»