Articles Property Buyer Guide How Technology Helps With Your Home Loan Process

How Technology Helps With Your Home Loan Process

The home loan process can be daunting and tiring, especially to first-timers. But with technology, getting home loans are now safer and more efficient.

Offering increased convenience for myriad brands and corporations, technological advancements that have been developed through the years have also changed the lives of individuals and families, especially those who are starting out and applying for a housing loan.

However, with the overwhelming number of companies offering housing loan programs, it's now a bit more difficult to match a certain client portfolio with the right kind of home loan program — one that's suited to the client's current budget, accompanies the needs and demands of the clients, and most importantly, is payable in the foreseeable future. And with that being said, this is exactly where technology comes into play.

1) Digitalization

Gone are the days when agents, clients, bankers, or any other people involved in a home purchase would fuss and panic over heaps and heaps of paperwork — housing loan documents have found their way to the digital space and can be accessed on demand. From supercomputers to an app on your phone, you're sure to have a safe and convenient place for retrieval and storage of the data needed for a smooth home loan process.

On the downside, easier access could mean easier data stealing, so make sure you have your digital safety protocols up to par to prevent any unfortunate incidents of security breach. It's always good to never share your personal data to suspicious individuals or agencies — especially sensitive information like passwords, phone numbers, email addresses, as well as card details like your bank account number and PIN numbers — these should not be disclosed to just anyone.

2) Artificial Intelligence

The breakout star that's well-loved by students and marketers alike tasked to churn out content (but has actually been around for ages), AI or artificial intelligence can be utilized in home loan applications especially for fraud detection, risk assessment, analytics, and the automation of routine tasks, among a slew of others.

A good example of how AI helps with home loans processes is the compilation of specific pieces of information from relevant documents at scale, as well as verification of the authenticity of submitted documents through applying programmed verification protocols. AI, especially when used the right way, ensure creditors and debtors of more streamlined home loan processes, and therefore less forks in the way of both.

3) Blockchain Technology

Compared to traditional information storage methods or databases, blockchain technology claims to be more transparent because of distribution — information is kept in blocks that form a chain. Information in blockchain is not easily changeable, and applies to multiple devices in real time so important details are kept safer and more up to date.

However, it could take some more time until home loans programs adapt blockchain technology to store data, but when the time comes, loan contracts can be automatically generated, accounts for a home loan program can easily be set up, and ownership of the property can be registered and/or transferred more seamlessly.

Technology in Practice: How It Makes Home Loan Processes More Efficient

Today, we have housing loan platforms in the Philippines like Matchmo that do all the necessary work to pair the right loan programs with clients of different needs (and budgets). When asked about how the company utilized technological advancements such as digitalization, AI, and blockchain to make the process of securing home loans safer and more efficient, CEO Kevin Carreon states:

"Our company has harnessed technology, particularly digitalization, to revolutionize the home loan process. As the first and only free-to-use platform for real estate professionals, it offers a seamless one-stop solution, from property recommendations to loan release. By incorporating a centralized live inventory, we empower sellers to suggest properties nationwide using real-time data. This eliminates outdated information and ensures accuracy. For home buyers, we provide a transparent and comprehensive experience, including free assessments and loan assistance. Our commitment to leveraging technology guarantees efficiency and security, simplifying the entire journey from property selection to loan acquisition."

Complete with real estate professionals, partner banks, and other affiliates, Matchmo, along with other online mortgage platforms, is an excellent example of how technology is utilized to save people time from a tedious loan process, give the power mainly to users, and filter outdated (or even fraudulent) information. And especially with apps, users gain access to real-time updates on listings, home loan programs, and the general management of their home loan process.

Technological Advancements Transforming The Home Loan Industry

Aside from AI and blockchain technology, the existence of online comparison websites, borrower and realtor portals, digital closings, and even e-signatures all make the home loan process much faster, easier, and smoother. With the existence of these in the digital world, it eliminates the need for physical efforts (and unnecessary expenditures) to fulfill the needed requirements for a home loan.

The permits that need to be secured, the networks that one must have, and the budget range can all be handled and accomplished with just a few taps on our internet-ready devices. And the teams – including banks, mortgage platforms, and other service providers – must work hand in hand to ensure that the process is indeed smoother and more seamless than otherwise traditional ways.

The General Impact of Technology On The Home Loan Industry

While the home loan process is known to be paperwork-intensive and time-consuming, today's newer and more innovative platforms and procedures now make the experience much simpler and more convenient for every party or institution involved. The slew of benefits afforded by technology are slowly transforming the mortgage industry worldwide, and hopefully the entire country soon enough.

Specifically, the digitalization processes can provide a sense of assurance especially on the many steps of the loan process such as verification and document collation. Technology is also mostly reliable when ensuring completion of submissions and accuracy of documents with no delays or extra fees on the customers' end, which leaves them with a higher satisfaction rate.

And in light of customer experience, technology massively contributes to the comfort, adjustability, and transparency of a process that's mostly known to be the complete opposite. Technology switches the power from institutions to customers, which makes the latter make more informed decisions and have a better understanding of the loan process.