There is no doubt that technology has already had a significant impact on the world of real estate. From online listings to 360-degree virtual tours to the ability to digitally upload and sign documents, technology has made it easier than ever to find, show and purchase a home. But all of that is just the tip of the iceberg. The real estate industry and the mortgage industry are generally thought of as two separate industries, but they are also inextricably linked to each other. Without one, the other doesn’t exist, so major changes in one industry lead to major changes in the other.
As it stands right now, even the fairly rapid sale of a home may still take a month or more to complete and generates several thousands of dollars in fees. There is an ocean of documentation and paperwork that must be compiled by various parties, with numerous checks and inspections conducted. The larger, more complex or expensive the property, the longer it generally takes. Of course, a cash sale makes the process faster and smoother, but realistically, cash sales are generally few and far between.
Up until now, most homebuyers have been okay with the sloth’s pace of buying a home. In some ways, they may even value the enormity of the process because of the enormity of the purchase. But Millennials, who have largely grown up using technology, are used to moving at a much faster pace and expect services to speed up as well. Thankfully, technology is emerging that will meet their demands. With secure document storage, lenders are able to do soft pulls on credit now to quickly offer terms without impacting the borrower’s credit score.
Instead of having to gather and fax mountains of documents, borrowers can simply access the majority of documents online and forward them to the lender, where they can also be quickly processed. With digital signatures, they don’t even have to make a visit to the bank. Funds can also be transferred digitally, which means closings may soon be a thing of the past as well. Agents can simply meet with their clients at a bar or restaurant to have a celebratory drink or dinner. With smart features in homes on the rise, they won’t even have to transfer keys, they’ll just get an electronic code to the front door.