In a post-pandemic era, consumers are looking for the most efficient and convenient solutions for their needs, homebuyers are no exception.
With the right mix of technology and personal interactions, new tech developments—such as digital homebuying, digital closing methods, and online homebuying in general—can ease the stresses and hassles of homebuying greatly.
The Federal Savings Bank is dedicated to meeting these expectations by embracing innovative solutions.
Let’s look at how cutting-edge technology combined with personalized services can deliver a faster, more efficient homebuying experience for first-time homebuyers, repeat buyers, and tech-savvy consumers alike.
The digital homebuying process
New online tools for real estate and homebuying are developed every day and have revolutionized the way people search for and purchase properties. Property search databases, online mortgage applications, and more all offer numerous benefits for buyers and sellers alike.
Online home search and its benefits
Homebuyers today often find searching for homes online is faster, more convenient and provides a wider range of options than traditional methods.
Buyers can filter search results based on their preferences, such as:
- Location
- Price range
- Desired property features
Each criterion allows them to narrow down their choices and save time by focusing on properties that meet their needs.
Digital mortgage applications and pre-qualification
The appearance of digital mortgage applications and pre-qualification processes has streamlined the lending experience for both borrowers and lenders.
Automated tools and AI-assisted platforms help lenders prequalify borrowers more efficiently, allowing them to quickly identify suitable candidates and offer competitive terms.
Not only can this help expedite the mortgage process but also helps connect buyers with the right lender and vice versa. This process helps to provide a more personalized experience for borrowers.
Virtual tours and augmented reality
Virtual tours and augmented reality (AR) technologies have transformed the way buyers explore and experience properties.
Virtual reality for virtual real estate
VR (virtual reality) systems enable buyers to virtually walk through a property and achieve a realistic sense of its layout, design, and ambiance without physically being there.
Augmented reality (also called AR), on the other hand, allows buyers to overlay digital information onto their physical surroundings, enhancing their understanding of a property’s potential.
Smartphone AR apps allow potential buyers to:
- Visualize furniture arrangements
- Experiment with different color schemes
- See how the space would look with renovations
These immersive experiences empower buyers to make more informed decisions and simplify the house hunt process.
Digital closings: a more efficient solution
Digital closings, also known as “eClosings”, have emerged as a more efficient solution for the homebuying process, offering numerous benefits for all parties involved.
Streamlined process
Digital closings streamline the process by handling much of the paperwork through secure online portals and software, reducing the need for physical presence and coordination of schedules.
This enables buyers and sellers to sign documents remotely, saving time and effort.
Time-saving
One of the main advantages of digital closings is the time-saving aspect. Studies have shown that digital closings can shorten the time it takes to close substantially in comparison to traditional methods.
If this option is available, that means buyers can move into their new homes faster, and sellers can receive their funds quicker.
Reduced errors
It’s been found that digital closings reduce errors by about 30% compared to traditional paper-based processes.
Cost savings
Lenders who have adopted digital closing processes have reported savings of around $444 per processed loan. Savings like these are attributed to the reduced need for manual review, paper-based processes, and the increased efficiency of digital platforms.
Improved customer experience
Digital closings provide an improved customer experience for borrowers, who enjoy a less stressful and more straightforward mortgage process.
More efficient means of communication and convenience result in greater trust in lenders and a higher likelihood of referrals and repeat business.
By adopting digital closing solutions, such as hybrid and fully remote closings, lenders can offer a faster, more efficient, and enjoyable homebuying experience for their clients.
Security and trust in the digital homebuying process
As the homebuying process becomes increasingly digital, ensuring security and trust in online transactions becomes equally important.
Digital identity verification
Digital identity verification performs a crucial role in establishing trust between parties involved in the homebuying process.
Cross-referencing data from numerous sources of information, such as unique digital identity tokens, is virtually impossible to falsify.
Authentication tokens like these can then be shared remotely with everyone involved throughout the transaction process, ensuring a secure and reliable experience.
Secure digital environments
Another new tool for enhanced online security is secure digital environments for eClosing. These systems are ideal for protecting clients’ sensitive information and reducing the risk of mortgage fraud.
Technologies like these enable mortgage transactions to be verified, ensuring that documents originate from trusted sources and signers’ identities are authenticated.
Data security best practices
Anyone who uses the internet should follow the best practices for data security. Real estate professionals have a responsibility to keep clients’ online transactions and information safe.
This includes implementing and maintaining reasonable safeguards to protect personal/ identifiable information.
- Regularly updating anti-virus software
- Activating firewalls
- Educating clients on safe online practices
These are all essential steps to ensure a secure digital homebuying experience.
Personalized interaction in digital homebuying
It’s understood that the biggest danger with digital homebuying technology is the loss of human connection between the lender and borrower.
At The Federal Savings Bank, our dedicated loan officers play the biggest role in delivering a personalized homebuying experience and that applies to their online interactions too.
These professionals possess the experience needed to help match clients to a mortgage product that meets their needs and work closely with homebuyers throughout the entire process, whether that be digitally or in person.
By taking the time to understand each client’s unique financial situation and goals, our mortgage bankers can tailor their recommendations and support to ensure a smooth and efficient homebuying journey.
Technology is merely a means to improve the customer experience for clients and create an easy, streamlined process to close their dream homes.
Online buying with the human touch at The Federal Savings Bank
The Federal Savings Bank is dedicated to simplifying the homebuying process by combining innovative technology with personalized service.
We embrace digital solutions such as:
- Online home searches
- Digital mortgage applications
- Virtual tours
- Digital closings
Innovative tools such as these can provide a faster, more efficient, and enjoyable experience for clients. Our experienced loan officers work closely with borrowers digitally and in person to understand and meet their needs.
Where are virtual mortgages headed?
As the homebuying process continues to evolve, The Federal Savings Bank remains committed to staying at the cutting edge of industry trends and providing the best possible experience for its clients.
By focusing on security and trust, The Federal Savings Bank ensures that clients can confidently navigate the digital homebuying process while safeguarding their sensitive information and assets.
Experience a more efficient, personalized homebuying experience with the support of a dedicated mortgage banker and cutting-edge technology.
Complete your online mortgage application or reach out to the loan professionals at The Federal Savings Bank today.
Subject to credit approval. Terms and conditions may apply. Property insurance is required on all loans secured by property.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to you individual situation.
