A Competitive Real Estate Market and Low Interest Rates are Keeping Mortgage Lenders on Their Toes — Three Key Factors Will Determine Who Wins in 2021
By Gary Kasper, President at New Vista Solutions
As the nation’s economy begins what appears to be a robust recovery from a pandemic-related collapse in 2020, low interest rates continue to fuel the real estate market and all that comes with that — including mortgage loan applications. Consumers are buying homes, refinancing existing mortgages and tapping into equity to pay for renovation projects.
Mortgage lenders must be at the top of their game to remain competitive in this market. Here are three aspects of the loan approval process that lenders should prioritize:
Minimize the Closing Time
Consumers have grown accustomed to the benefits of technology, one of which is immediate gratification. Whether shopping online or applying for a loan, they expect quick turn-around times. One sure way a mortgage lender can lose a customer is by taking too long to get the job done.
Lenders have many options when seeking settlement service providers. Choosing a provider who can offer solutions that save time without sacrificing quality and efficiency is key.
Cut Settlement Costs
The savvy borrower will compare estimated closing costs before moving forward with a loan application. Lenders who do their homework and seek out the lowest fees from their settlement providers will be able to offer lower fees to their customers. Home Equity lenders have to be especially careful here since many HE and HELOC programs are offered at no cost to the borrower meaning the lender absorbs those fees.
Maximize Efficiency Through Technology
The digital transfer of information has become routine in all business markets, but it’s especially important when time is of the essence — as it is when processing a loan associated with real estate. The top lenders will partner with vendors who offer mortgage settlement products and services on automated ordering platforms, and many vendors will interface directly with a lender’s origination software.
Technology can significantly reduce closing times, improve compliance and enhance quality control measures. More efficiency means more savings — for the lender and the borrower.
New Vista Solutions has created a customizable bundle of settlement products that is designed to help lenders cut their closing time and settlement costs by as much as 50% — it’s called FastTrack. From one centralized ordering platform, lenders can build a custom bundle of products that aligns with their specific processing needs.
FastTrack offers AVMs and residential evaluations with optional warranties, USPAP-compliant hybrid appraisals, automated employment, income and asset verifications, flood determinations and more. All products can be accessed through a web-based application or an LOS integration.
To learn more, visit newvistasolutions.com, or call 866.721.9295.