BeSmartee examines the difference between a mortgage application and a mortgage point-of-sale (POS) platform, and uncovers how a POS platform is a lender’s all-in-one solution.

The modern mortgage experience is so much more than a mortgage application.

As millennials continue to dominate the housing market, it’s evident that today’s borrowers want to get a home mortgage just about as easily as you can order a pizza from your smartphone. Having a digital lending platform is no longer a choice, it’s a must-have for lenders to stay relevant, especially in the COVID-19 era.

How does a mortgage application compare to a mortgage POS?

Let’s talk about what a mortgage POS can do for your lending business and how a mortgage application can’t compete.

What is a Mortgage Application?

A mortgage application is a document filled out and submitted by one or multiple individuals applying for a mortgage loan to purchase real estate.

Most lenders use the Uniform Residential Loan Application, or Form 1003, to determine if potential borrowers qualify. The application is lengthy and provides lenders with the necessary information to determine whether or not the potential borrower is financially stable enough to pay back the loan.

Analyzing the proven benefits a Mortgage POS can bring to your bank.

Technology is constantly changing the mortgage industry, making it easier for lenders to work with their customers and guide them through the origination process on a digital channel. One of these tools is the mortgage point-of-sale (POS) platform.

The right mortgage POS platform can allow banks to effectively communicate with their customers and provide them with the necessary information and documentation to validate data and complete their mortgage loan application. By accessing a web-based dashboard, borrowers can upload documents, communicate with their lender, and track the progress of their application.

Let’s examine 10 proven ways banks can benefit from the right mortgage POS platform.

1. Improve the Borrower Experience

The digital mortgage is all about the customer experience and it begins at the point-of-sale.

The results from a 2019 survey conducted by McKinsey & Company of 1,200 residential mortgage customers showed that there’s plenty of room for improvement in customer satisfaction. Findings showed that superb customer experience was as important as getting the best rate. First-time home buyers said they relied on online reviews and word of mouth to learn more about how well the bank worked with their borrowers to deliver an exceptional experience.