The Techie Way to Apply for a Mortgage

in Property & Architecture, Finance

Technology has made it easier than ever to find a bargain. Take, for instance, car insurance. Back before comparison sites went live, the only way to find the latest deals and save a few pounds was to be on the phone for hours. Today, however, you can click a few buttons and be shown not only the latest deals but ones tailored to your circumstances. Of course, there are limitations to how insightful these comparison sites really are. However, in general, they’re able to save you money.

From the early days of insurance comparison sites, we’re now in a place where tech is helping in other areas. One of the most interesting areas of development in recent years is the mortgage market. Arguably the most significant investment anyone makes in their lifetime, mortgages are a big deal. Therefore, it makes sense to use technology to its fullest. Of course, before you start taking the advice of mortgage comparison sites, you need a bedrock of knowledge. If you are interested, you can also check Continuing Education for Mortgage Brokers.

Pick Your Mortgage Targets Wisely

The only reason we can trust car insurance brokers is because we’ve applied for and owned an insurance product before. When it comes to mortgages, that’s often not the case. Aside from the fact, a mortgage is a huge commitment, it’s a loan that gets noted on your credit score. Therefore, you can’t simply go around applying for mortgages. To put it another way, you can’t take too many shots, which is why you need to make the right decision the first time (ideally). With that being the case, knowledge is power. By reading through lender reviews, you can start to understand the market’s fundamentals.

For example, online broker Trussle provides a breakdown of the Nationwide mortgage application process. Alongside information on the rates it offers, you’ll find a comparison of its customer service scores, a brief history of the company, its lending capacity and more. By reading through these types of reviews, you’ll build up a baseline of knowledge which you can combine with recommendations made by smart mortgage software. Powered by the latest in machine learning technology, the latest comparison tools are designed to streamline and improve the entire application process.

Profiling the Perfect Product

Put simply, comparison tools are able to profile users and constantly refine the types of suggestions they make. As more applicants use the software, it processes more data which, in turn, allows it to establish which deals suit which type of person. Moreover, because they can tap into live data feeds, their recommendations are always changing based on market conditions and new information. In fact, what’s interesting about the advent of artificial intelligence (AI) and machine learning (ML) in the mortgage world is that lenders are also using it.

Although data from Fannie Mae shows that only 27% of US lenders are currently using AI/ML, it’s a growing industry. Because these programs can collate and analyse huge amounts of data, in turn, learn from previous patterns, lenders can better assess risk. That’s obviously a positive for their business as it means fewer people defaulting on repayments. This, in turn, becomes a benefit for consumers. If lenders are doing well financially, they have more capacity to lend. So, in that sense, technology is mutually beneficial. Indeed, if you’re someone that’s looking to get on the property ladder, it’s a great time to make an application if you’re willing to take the techie approach.

Image Credits: Steven Millstein

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