Is the mortgage application about to have its own “Uber moment”?

Corey —  May 24, 2016 — Leave a comment

For any of you who know anything about Uber, you will know that it is a mobile application that has absolutely revolutionized the taxi business by putting the power and speed of finding a taxi into the hands of the average consumer.

Now, we believe for a number of reasons that the mortgage application process is about to have its own Uber moment by speeding up the mortgage process exponentially.

Reason One: Mortgage Calculators are Readily Available

Truly, the number of easy-use mortgage calculators on the Internet has grown in an incredible fashion over the past three years. Take Yorkshire Bank’s Mortgage Calculator for example–it quickly educates a homebuyer about the amount of house that they can afford, what they would have to pay back each month, and how long it would take to service the mortgage. This absolutely revolutionizes the education process of everyone attempting to get a mortgage, and this is just one basic example of the thousands of phenomenal software out there that can now help with mortgage value calculations for consumers.

Reason Two: Rocket Mortgage is Changing the Landscape

For those who don’t already know, Intuit (the same company that made QuickBooks and Mint Personal Finance) has recently released a new mortgage application mobile app that allows individuals to find and obtain a great mortgage after just a few button clicks. The name of this application is Rocket Mortgage, and it drastically speeds up the mortgage application process.

Reason Three: Technology is Fixing Basic Economic problems

For those of you who remember the housing crash of ’07-08 in the United States that killed the American stock market and reverberated around the world financial markets, you will know that the problem began with banks providing loans to sub-prime borrowers. In reality, this is a practice that has occurred in many countries to the detriment of the entire global economy.

Now, not only does Consumer Reports argue that Rocket mortgage has increased the mortgage application process, just as Uber increased the “find-a-taxi” process, but Forbes also argues that the entire Internet, tech-age will improve the processing of electronic mortgage application documents in all new ways as other online mortgage providers flood the marketplace.

Furthermore, this writer would argue that, by allowing the entire mortgage process to be carried out online, this will greatly eliminate systemic economic risk that occurs by allowing people (who have compassion) to provide sub-prime borrowers with mortgage loans simply because they feel for the borrowers’ situation. Since a computer only sees numbers and figures, we will no longer need to fear whether or not a sub-prime borrower is being given a loan they can’t balance because of a human error.

Take no doubt, the mortgage market is absolutely undergoing its own Uber moment even as we speak.

Corey

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Corey is currently pursuing a Master of Arts degree in religion. While he enjoys learning and writing about Christianity, another one of his new passions is writing about personal finances in order to help others make wise decisions with their money.

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