The American dream may not have changed, but the way to achieve it sure has. Technology such as artificial intelligence and machine learning enables consumers to enjoy convenient, speedy transactions at the touch of a button — buying a home shouldn’t be any different. Unfortunately, much of the mortgage industry remains antiquated, hamstrung by outdated processes at legacy banks where change is akin to turning the Titanic. 

When it comes time to buy a home, chances are you will be looking for a fast-closing mortgage to fit your lifestyle. Fortunately, this is where digital mortgages come in, revolutionizing the home buying process. Borrowers are no longer burdened by the paper trail that typically accompanies the application process. The result is more environmentally sustainable, and not only cuts down your carbon footprint but also saves you money and time.

How is the Digital Mortgage Experience Changing the Mortgage Process?

Digital mortgages have disrupted legacy systems in nearly every way. Manual systems involving hundreds of pages of papers, data entry, and in-person meetings have been replaced by automation, fancy algorithms, and access via mobile devices. In addition, manual processes that were prone to human error are now automated, providing users with a more accurate and transparent approval process. 

The result has been an accelerated and easier application process that doesn’t leave the borrower stumbling around in the dark for days or longer. Digital mortgages can be processed in as little as half the time as the old way. That is why homebuyers are flocking to digital mortgages — you’ll be hard-pressed to find a mortgage lender who doesn’t desire a fast-closing mortgage. So how does the digital mortgage process work? Let’s take a look at a few of the basics:  

  • You’ll still have to fill out an application, but you won’t have to miss a day of work to do it. Instead, you can fill out the application online and begin your (hopefully fast) mortgage approval. 
  • Next, if given the opportunity, let the program work for you and share your bank account information with the provider. This could lead to fast mortgage approval.  
  • Your provider might need to request more documents. Don’t fret, you can most likely upload whatever is needed. If not, follow the prompts to either scan or, if necessary, fax it to them. 

There will be some additional hoops to jump through later, but this should start you on your way to a fast closing mortgage.

How Can a Digital Mortgage Lead to Faster Mortgage Processing Times?

The two key features of a digital mortgage are speed and simplicity. And no, digital mortgage providers don’t trade accuracy for efficiency. On the contrary, there is a smaller margin of error with a digital mortgage. According to a 2018 study by the Federal Reserve Bank of New York, mortgage application processing is 20% faster when done by tech-based lenders vs. traditional providers. Not only that, but the default rate for digital mortgages is roughly 25% lower.  

This is thanks in part to an automated process in which systems talk to each other and allow for automated information pull between the borrower’s bank and the lender. Less human involvement, fewer errors. The borrower even signs on the dotted line digitally, leading to faster mortgage processing. There are no paper documents to gather or drudge up and no need for the back and forth between the borrower and lender, which could otherwise delay the process by days or longer.

How Long Does It Take To Get Approved for a Digital Mortgage?

This is where the rubber meets the road. You have filled out the online application and jumped through the necessary hoops to prove your creditworthiness. You’ve uploaded your pay stubs as well as your tax returns from the past few years. And now you want to know, ‘how long does it take to approve a mortgage loan?’ You’ve come to the right place to learn about a fast mortgage approval, but keep in mind that no two processes are exactly alike. Getting a mortgage is a multi-phase process comprising: 

  • Preapproval
  • Property appraisal
  • Loan processing 

Generally speaking, however, time is on your side. In fact, the average closing time for a digital mortgage was 42 days in 2020, and that was during the pandemic year when there was mass adoption of online processes so people could avoid face-to-face meetings.  In 2019, the average closing period was even better, at 39 days. This is considered a fast mortgage approval vs. the traditional method. For a traditional loan, soup to nuts, you’re looking at approximately 49 days. It could also be as long as 60 days.

Learn more about Ratecloud’s Mortgage Process

If you are in the market for a digital mortgage, go ahead and jump in, the water is fine. At Ratecloud, we know that time is of the essence. That’s why we have tailored our application process so that you can receive a personalized rate quote in as little as 15 minutes. We are here to help accelerate your digital mortgage journey regardless of whether you are a first-time buyer or looking to invest in a rental property. No matter the type of loan product you may be looking for—such as an FHA, 30-year, 15-year, or VA—we have done the groundwork so you don’t have to. Ratecloud is where you can find a fast closing mortgage.