Five Changes In The Way Mortgages Are Done
For years, mortgages have been one of the most widely used financial tools when it comes to making large purchases like a home or a vehicle. Irrespective of your financial status, mortgage agents have connected clients with lenders and helped them fulfill their goals. All through this time, changes in the rules and regulations have impacted the mortgage industry, but the onset of COVID-19 has revolutionized the way mortgages now work.
To help you understand how these new changes will affect you, Mohit Verma has put together a list of the five changes and how they will affect the way mortgages are done.
1. No contact meetings
Unlike before, mortgage financing consultations are now going to be 100% digital. Thus, there will be minimal to no in-person meetings with clients for all mortgage financing and process completion. Homeowners and mortgage brokers both need to transition to this online and virtual meeting set up and they will need to adjust and learn their way around the digital platforms to enable a smooth process without complications.
2. More documentation
Mortgage lenders have begun to ask for more documentation for the purpose of income verification. They base their mortgage approvals on the client’s current income from their employment rather than the two-year average income they were used to. To have a smoother dealing and get your mortgages approved, the clients and mortgage brokers will need to adapt to this new system and request and accept more income documents to support their mortgage claims.
3. A longer process
As the mortgage application process moves online, the process of issuing a mortgage commitment will take a little longer than before. Also, conservative lending will see a change as lenders may be less willing to lend money for residential properties, given the global economic slowdown. Clients and mortgage brokers alike will likely not get preferable mortgage amounts to meet their needs due to modified appraisal reports and conservative lending by mortgage lenders.
4. Increased need for Private Financing
As mortgage lenders are less willing to provide mortgages for residential properties, clients may have to resort to private financing to cover the shortfalls. Another means to combat the lack of funds is to defer the loan to the following year. The only foreseeable solution here is that clients opt for shorter-term mortgage financing than the traditional five-year terms that they are used to.
5. A decline in traditional marketing
As the mortgage process will be entirely online, there will be no need for traditional marketing tactics to attract homeowners to seek help in mortgage financing. Financing firms like ours will have to derive new ways of making this digital process simpler. It may take time to adjust for both our clients and us, but we assure you with time, the convenience and ease will only increase.
As a leading mortgage broker in Richmond Hill, Ontario, Mohit Verma is here to help you every step of the way. Change is the only constant in the world, and I will ensure that there are no hurdles along your path to obtaining a mortgage that I can’t help you overcome.
With my comprehensive mortgage services, I provide mortgage solutions to clients dealing with poor credit, self-employed clients, or clients facing other challenging credit situations. With my alternative solutions and unlimited loan options, I can also help you recover from bad debt situations and mortgage complications.
To learn more about the services that I offer at Axiom Mortgage Solutions, please click here. If you have any questions about how I can help you or for more changes to the mortgage markets, get in touch with me by clicking here.