Traditionally a loan changes hands 40 or more times before it is funded. This makes the loan process extend to up to 40 or more days when it should really take much less time to close (as little as 7 – 10 days). The reliance on documents and old workflows is the primary cause of such a drawn-out process.

These critical inefficiencies are driving forces for increased costs and lower profit margins.

In the contemporary business environment there is one fundamental truth — innovate or die. This truth is steadily becoming more self-evident in the home loan and finance sector with the overwhelming success of digital mortgage tools.

Just look at the success of Rocket Mortgage by Quicken Loans.

They have closed more than $400 billion of mortgage volume from 2014 to 2017.

How can you compete in the mortgage industry if your biggest competitor is a behemoth like Rocket Mortgage?

Almost all mortgage software has one common goal which is to cut down on the length of time for a loan to close. The big time sink  of this process usually consists of document collection and verification. So what will differentiate you from your competitor?

The answer is improved customer service through increased interaction. Digital mortgage apps should reduce the amount of time that LOs and mortgage professionals spend on tedious document collection. Any successful mortgage broker or loan officer could see how leveraging the power of a mortgage app could help them improve the customer experience.

In concert with a more human-friendly approach, mortgage professionals could find major gains by using more flexible and customizable mortgage solutions such as the mobile-friendly Loanzify app.

Using a 3rd party software solution could also provide your clients with more transparency and options than Rocket Mortgage does. Many financial experts, including Forbes, agree that increased transparency in all transactions is key to tapping into Millennial spending power.

Consumers Expect Flexible and Simple Digital Experiences

Today’s consumers want information immediately and they want to get that information through their smartphones.

This is especially true with applying for a mortgage where the average loan applicant will want a digital verification of steps completed in the loan process and notification pushed to their mobile device when their loan is approved.

Busy loan applicants want to be able to fill out their applications when they have time. Whether they are taking the train to work, on a lunch break, or at a dentist waiting room, every consumer wants to get more done with ease. A solid mortgage point-of-sale system will enable your clients to fill out important paperwork on their schedule and that means faster loan processing for LO’s.

Keep in mind that many loan applicants will want to communicate via a number of different methods. Text, email, social media, in-app instant messaging, and phone calls should all be considered as necessary options that you need to provide to your clients if you want to win the business of today’s customers. Your lending software should offer easy access to all forms of communication. Lenders must aim to make securing a mortgage as easy as booking a hotel room.

Let’s consider one very important idea. Impulse buying. According to many consumer experts, Americans are likely to spend more than $300,000 in their lifetime on impulse purchases. When people think of mortgages they usually do not think of applying for a home loan as an impulse buy. Indeed, it isn’t a trivial purchase. However, if you are up late one night and wondering if you could move into the home of your dreams, how much more likely are you to pull the trigger on a decision if there is an easy to use app that will tell you if you qualify? Many purchasing decisions are not made in supermarket aisles or offices, but instead in the quiet moments of our busy lives.

By integrating a digital mortgage solution into your sales funnel, you are increasing your likelihood of profitable conversions. This is a major way that you can compete with the giants like Rocket Mortgage.

A Digital Experience is a Human Experience

Innovation is a must as technology increases with exponential growth, but everyone needs a friend. The new market of consumers readily understands how to use a smartphone, an app, and the latest tech. They need someone with expertise to explain the fine details to them. All home buyers find APR, closing costs, and the many complex details of buying a home to be foreign and confusing.

The current generation of mortgage applicants wants quick access to advice and help through a simple smartphone app.

Replace repeat questions and worried late night phone calls with features like:

• In-app chats
• Timelines that show the progress of the loan process in a simple visual format
• FAQ’s
• How-to videos detailing ideas that would be too tedious to read

Adding warmth, friendliness, and constant contact to your business makes applying for loan seem approachable which is especially important for prospective first-time homeowners.

Competing with Rocket Mortgage Means Providing a Better Digital Solution

The simplest way to compete with Rocket Mortgage is to provide consumers with a better alternative to the status quo. Increased efficiency, enhanced convenience, and a warm human touch are all things that smaller LO’s can do to stay in the game. Find a digital mortgage solution that compliments your company’s strengths and make a name for yourself as the better alternative to Rocket Mortgage.

This is a huge opportunity.

If you are looking for a customizable digital mortgage solution that will grow with you, then check out Loanzify. The Loanzify app is an all-in-one tool that can enhance your business and help loan applicants.