Can apps promising rapid approvals be trusted" We live in a world where just about anything you want is just a click away. If you believe the catchy slogan of Quicken Loans Rocket Mortgage program, you can even get a mortgage with the push of a button. But does it really work like that" Or could this rapid loan approval model mean we?re headed for an app-led financial crisis" We went to the experts to find out.
Not all mortgages are created equal
?Mortgages are not like making blue jeans, you don?t put them through one process, and one size fits all,? says Anthony Piccone, president and CEO of 7th Level Mortgage. Each borrower has unique circumstances and qualifications that determine approval.
The promise of an instantaneous 20-minute approval gives false hopes and expectations, he adds. Piccone believes that mortgage apps are more about getting potential borrowers into the pipeline and out of the mortgage shopping process.
The reality is that most borrowers, especially first-time buyers, are not savvy enough to navigate through the tedious paperwork on their own. Even seemingly simple questions like ?what is your annual income? are more complicated than you think since the calculation will differ based on whether you are an hourly employee, a salaried employee, or self-employed. Getting preapproval based on unverified information isn?t worth anything, Piccone adds.
There are a lot of easy mortgage applications programs?Rocket Mortgage is th...