Better than almost anyone, loan originators know the woes of lost paperwork, sitting around waiting for signatures, and the emotional stress when stacks of paper pile up on your desk. But with the advantages of a paperless loan process, it doesn’t have to be that way anymore.
More than 40 percent of today’s homebuyers are millennials. This generation grew up with smartphones and the internet and is fully accustomed to filling out paperwork online and accomplishing tasks, from hailing an Uber to buying a home.
Consider the benefits of a paperless loan process and the potential to capture more of the millennial market.
Paperless loans help reduce operational costs. From the price of paper to ink, toner cartridges, printers and printer maintenance, paperwork raises a company’s costs for office supplies. Studies show the average corporation spends about $200 per employee on paper and related expenses per year, although the average for some industries is much higher.
No paperwork reduces office clutter and stress on lenders and loan originators. It’s not just supplies that cost money. American workers spend the time equivalent of $70 million per day searching for lost paperwork. From lost productivity to worker frustration and poor morale, paperwork carries many hidden costs that can be reduced or eliminated with paperless loans.
Mobile capabilities speed up the process. Consider a fast and efficient loan process that lets borrowers view forms and provide digital signatures through a computer or any mobile device. Loans won’t be delayed because loan officers are out of the office or borrowers are out of town.
Paperless loans reduce your office’s carbon footprint. That’s good for the environment (and appeals to borrowers). Paper has a huge impact on the carbon footprint, or the amount of carbon gases released into the atmosphere, which has been shown to speed up global warming. Paper production emits carbon dioxide into the atmosphere, and the trees cut down to produce the paper are no longer able to consume that CO2. Additionally, used paper is eventually disposed of, further contributing to its carbon footprint.
In a Nielson Survey, 58 percent of consumers said they would be willing to pay more for a product from a brand that is environmentally friendly and, of those 58 percent, more than half were millennials. A green mortgage process can help you secure the business of this large demographic.
Digital loan applications are more secure than paper files. Although cybersecurity is a key concern of anyone in the financial sector, many identity theft crimes still take place by low-tech means. If paperwork is left on a desk or in an unlocked file cabinet, it is often less secure than encrypted data on a secure network. And it’s tougher to track the culprit, too.
A paperless loan process enables speed and certainty of closing. Perhaps most importantly, a paperless loan process expedites closing. The faster your customers close, the less chance there is of a deal falling through.
Between the cost savings, the reduced environmental impact, and the increased productivity that emerge from a paperless loan process, you may wonder why anyone processes loans the old-fashioned way.