Digital is here to stay. And it’s even impacting construction lending!
With refis on the decline and a lack of purchase inventory available to potential buyers, opportunities in construction lending are expanding every day. The most resourceful lenders are already seizing this opportunity, and you can too. To some, construction and renovation lending often comes with a negative connotation - high risk, painful to service, and extremely time-consuming. However, with recent digitization throughout the entire mortgage industry, construction and renovation lending is being transformed from an antiquated process via multiple platforms to a streamlined and singular, user-friendly environment.
Yes, construction loans often get a bad rap, but with the current landscape they are now more important than ever. Technology is changing everything from pro-actively managing key construction risks to taking loans off of spreadsheets and providing internal lending teams one centralized place to work while offering clients complete transparency for proper oversight into what’s going on in real-time.
If you’ve decided to make the leap to build your construction or renovation program, or if you’re already active and wish to grow your portfolio, here’s what implementing digital draw management software can do for you:
- Offer a best-in-class client experience to your borrowers, builders, and draw inspectors.
- Provide faster draw turnaround times for your builders.
- Gain increased interest income on your loans.
- Reduce construction loan portfolio risk and simplify compliance.
- Maximize administrative capacity.
While the advantages of digitizing the construction loan process are obvious for you and your clients, there is also another, often overlooked byproduct: free referrals.
The builder knows that in construction the real work begins after closing and is consistently searching for the most efficient way to manage the loan. Let’s face it, competing for business on rate is hard to do, but your ability to offer a digital platform that will ensure no delays or slow down the draw process and provides transparency for every action will build trust with the builder and result in increased business through referrals. Plain and simple, builders are truly the gift that keeps on giving.
Can your financial institution keep pace with today's increasing construction loan demand? Secure your share of the market with digital draw management software to maximize your returns and watch your business grow. Not only will your team thank you, but so will your clients.