The number of existing homes that are likely to sell in 2019 should be around 5.25 million. That number is slightly down from last year but still shows radical improvement since the 2008 recession.
Part of the reason why homes are being sold at such an impressive pace is the simple reason that getting a home today, thanks to technology, has been made easier than ever thanks to the rise of the mortgage app.
Mortgage apps are basically phone applications that act as brokers. They help buyers understand a bevy of information that’s related to their financial situation and, based on that information, try to pair them with lenders that can finance their home buying dreams.
If you’re curious to know how exactly a mortgage app can improve the way a whole industry does business, look no further. Below, we break down the mortgage app’s key advantages.
1. Brokers Are Investing in Technology
For the uninitiated, a mortgage broker is a party that connects prospective home buyers with prospective lenders. It used to be that you’d go to this finance broker or that one that was set up nearby, they’d hopefully give you a qualified picture of how much home you could buy and then they’d try to set you up with a lender that pays them the highest commission.
Today, brokers are changing the way that they do business.
Instead of having brick-and-mortar offices and a handful of lenders that they work with, they’re investing in technology, brokering through beautiful applications and giving buyers a wider variety of lending options.
That’s a win for brokers, buyers, lenders, and innovation!
2. Buyers Know What’s Possible
Could you tell somebody right now how much home you could afford based on your income and monthly expenses? Unless you’re a mathematical savant, we’d guess that you couldn’t.
And you know what? That’s okay!
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In today’s world, you can download a mortgage app, answer some simple questions and just like that; the application will tell you what you can comfortably afford, what’s a stretch and what’s out of your reach.
3. Lenders Can Find More Buyers
Let’s talk quickly about how lenders are winning in this mortgage app revolution. Bottom line, mortgage apps are flooding lender’s offices with applications, which means more opportunities for lenders to make serious money.
Here’s the thing… Most millennials don’t know where to start when it comes to walking into a bank and filling out a mortgage application. They do know though how to open up an app, answer some questions, and get pre-approved instantly.
Mortgage applications enable that second reality, which means that lenders have a way to engage today’s newest generation or property purchasers.
4. More Competition Means Better Rates
If you’ve never used a mortgage app before, it’s pretty cool how a lot of them work.
First, you’d figure out what home you qualify for. After that, the app will give you lending options, which is basically a screen filled with banks that are competing for your business.
Given the sheer volume of lenders that want to fund your home purchase, it’s no surprise that interest rates are dropping. After all, the best way to stand out from the pack is to offer the best deal.
Lower interest rates mean less money that you need to spend on your home-buying dreams.
5. Hidden Fees Aren’t So Hidden
We can’t tell you how many time’s we’ve seen homebuyers think that they can afford a home, go to buy it and then find out that between property insurance, PMI and HOA fees, there’s no way that they can make monthly payments.
What we love about a good mortgage app is that, through their affordability calculators, they disclose all fees that you’ll run into during any given month so you’re 100% prepared as to what your monthly reality will look like when paying down your house.
That sort of insight is what keeps people in their homes as opposed to foreclosing.
6. Encouragement of Responsible Buying
The temptation of getting into a house that you can’t afford can be really strong if you feel a connection with an expense property. We saw the catastrophic results of that mindset during the 2008 housing crisis.
Given the transparency of information that mortgage apps give and how clear they make buyer’s financial picture, we’re seeing a lot more buyers not trying to push their way into homes that they’re likely to lose.
Information plus more prudent lending from banks is helping usher in a new era that’s filled with happy owners and not sad families that are being removed from their homes.
7. Dreams Come to Fruition Faster
In case we didn’t make this point clear already, with a mortgage app, the home buying process is made so much easier. That ease makes homes more accessible to more people and makes dreams come true a heck of a lot faster.
If that truth isn’t what you’d call an industry “Game Changer,” we don’t know what is.
Closing Out How the Rise of the Mortgage App Is Changing Real Estate
When you download a mortgage app, you download a portal that enables you to step through every single phase of the home buying process while laying down in bed. That’s a pretty powerful thing.
We hope that after reading our write-up, you understand all of the benefits that mortgage apps afford today’s consumers, lenders, and brokers. We also hope that you’ll take the leap, download the app, and see if you have what you need to get into your dream house!
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