The mortgage industry is only slowly entering the digital age. According to the National Mortgage Association and Bankers Association, the volume of mortgage loans grew by about 6 percent in 2015, which was slightly less than the increase of 7 percent experienced in 2014. However, the pace of growth has accelerated. The projected annual growth rate over the next three years is 17 percent. This demand for access to affordable capital is driving a race to the bottom in mortgage services. Mortgage service providers are trying to offer the best products at the lowest prices with as few steps as possible. To keep up with this demand, lenders need to become more customer-focused and adopt new digital strategies that reduce communication costs while also enabling faster loan processing times.
Decide which mortgage service you need
When you’re deciding which mortgage service to buy, it’s helpful to know which features are most important to you. There are many different types of loan products available, and each has different features consumers should consider when shopping around for a loan. Learning the features of different loan programs can help you narrow down your options. The following are some of the most important features to look for in a mortgage loan. For a full list, check out NMLA’s mortgage features guide.
Learn the lingo
While it might seem like common sense to look for a loan with lower interest rates, many consumers are unaware that certain loan terms are different between loan programs. Fortunately, federal law defines many of the terms and conditions used by lenders, so you can comparison shop without getting muddled up in jargon. CFP, FHA, VA, and USDA mortgages are all different, but they have one thing in common: they all allow you to choose your lender. You can also look for credit unions with each offering a variety of loan programs, including no-interest, money market, and guaranteed low rates.
Make loan decisions using digital tools
When it comes to making loan decisions, you can’t just rely on your memory or your gut feeling. You need reliable data to make informed decisions, and that’s where technology can help. Having access to all the current information associated with a loan can help you avoid common mistakes, like making a bad decision based on incomplete and incorrect information. When you use digital tools, you can also easily compare multiple loan programs side-by-side to get a full picture of how each lender stacks up against one another. You can use online tools to compare interest rates, loan terms, loan repayment options, and loan programs overall, as well as show you offers from lenders in your area.
Stay up-to-date with the mortgage industry
The mortgage industry is only slowly entering the digital age. According to the National Mortgage Association and Bankers Association, the volume of mortgage loans grew by about 6 percent in 2015, which was slightly less than the increase of 7 percent experienced in 2014. However, the pace of growth has accelerated. The projected annual growth rate over the next three years is 17 percent. Stay informed and stay on top of the latest mortgage industry news by following the links below. You’ll find resources for things like current interest rates, mortgage-friendly cities, and even mortgage fraud awareness organizations.
Don’t be afraid to ask for a second opinion
Even if you’re a seasoned mortgage loan officer, sometimes you’ll make mistakes. Mistakes happen, and it’s important to be able to ask for help when you need it. Mistakes happen because we’re all human, and we’re all made of better stuff than we were expecting to be. Instead of wallowing in self-pity and shame, recognize that you made a mistake and take steps to fix it. Get help from a friend or co-worker who’s experienced with the same type of loan. Don’t be afraid to ask for a second opinion. Ask your customers what they think about your loan programs, and don’t be afraid to ask for feedback on the loan programs themselves!
Conclusion
Mortgage rates are currently at an all-time high, and many are wondering how they’ll ever come down. With more interest rate increases than most people can handle, it’s important to remember that mortgage rates won’t stay at a certain level for long. Home values fluctuate throughout the year, which can affect interest rates as well. When you’re applying for a mortgage, it’s helpful to know which features are most important to you. There are many different types of loan products available, and each has different features consumers should consider when shopping around for a loan. The following are some of the most important features to look for in a mortgage loan. For a full list, check out NMLA’s mortgage features guide.
