A fully online mortgage is definitely possible in the age of information. Technological innovations have been adopted by certain companies in the mortgage industry to create the online mortgage. An online mortgage can be completed through just a few clicks on a website or a few taps on one of your phone’s apps. Before the digital mortgage process is described, let’s go over what a digital mortgage process is and is not. A digital mortgage process is a way for individuals to apply for a mortgage without having to deal with loads of paperwork online. Some lenders may only have the application part of the mortgage process online, while others may have the entire process online. What a digital mortgage process is not is a one-click get a mortgage button. You still need to have both your credit and assets verified in addition to a host of other things. Now that the disclaimer is out of the way, let’s go through how you would go through a digital mortgage process.
You will need to fill out a digital mortgage application. The good news is that the application is online so you can do it wherever you can connect to the internet. The bad news is that the application may still take a couple minutes to complete. Some platforms allow you to apply once and the platform will search through their catalog of lenders to find the right mortgage lender for you. Even though you can complete the application on your phone, it is advised that you complete the application on the lender’s website. You will also need to upload documents such as your paystubs and bank statements to make sure you can get approved for a loan.
Also, when you shop around for a mortgage online and find a company you want to work with, they will send you loan disclosures. A loan disclosure will include the initial costs of the loan, the interest, payment, and the monthly payment. You may also need to review other forms from the Irish government depending on what kind of mortgage you are trying to obtain. You have to scroll through and read each document, and then e-sign the document to let the officer know that you are interested in proceeding with the full application processing.
Now, onto the digital document gathering. You will need to upload copies of documents to the application website so that the mortgage lenders can make sure they can give you a mortgage. You will most likely need to upload copies of paystubs, and bank statements in addition to some other documentation. Some newer mortgage origination platforms ask for your permission to access your information directly, so you don’t need to submit piles of digital documentation.
Communication and you
You will be notified either by email, text, or both throughout the entire mortgage application process. These messages potentially include but are not limited to milestone updates on the closing timeline, and messages directly from the loan underwriter regarding outstanding items needed for a mortgage approval.
Currently many websites and apps allow users to check on their mortgage status in real time.
You are required to get title insurance if you are borrowing money from a bank. This is so that the lender as well as you are protected from any claims related to the property you are buying as a result of claims against a previous owner. Like many other parts of this process, lenders are starting to offer digitized versions of title insurance. The title company you get title insurance from has to have special authority to due extra background checking since you are signing without being present in person. This opens up another layer of potential fraud risks for the title company you are signing with.
The digital closing process is very similar to the digital loan estimation disclosure from beforehand. The only difference between the digital closing and the loan disclosure is that all the loan costs are finalized. Once you sign a closing disclosure, you are very limited in the types of changes you can make to the document.
Once the signed closing disclosure goes out, many lenders will require you to sign in person in front of a title company, while being in front of a notary. You will also most likely need to provide some form of officially recognized picture identification to an attorney or escrow officer who shall witness you sign the loan documents. After the package of documents is signed, the lender will send you the loan funds, the property records that are now in your name, and you receive the keys to your property.
The digital closing version of this enables you to sign the entire document package electronically with e-signatures. After the signing is completed, the lender then funds your loan and authorizes the property recording into your name. Congratulations, you are now a home owner.
This article was written by Ian, an intern at Irish Mortgage Brokers and Yes.ie from the USA.
Ceizyk, Denny. “Should I Get a Digital Mortgage?” MagnifyMoney, 7 Mar. 2019, www.magnifymoney.com/blog/mortgage/should-i-get-a-digital-mortgage/.