Hello, Everybody. And welcome to today’s Knowledge Knugget brought to you by One Touch Video Banking. We’re going to be talking about a hot topic today — how Virtual Lending as a Service (LaaS) is really making a difference in 2021.
We’ve seen a lot of market changes in 2021. The real estate and housing market have gone crazy in a lot of markets. A lot of new players have come into the industry and allowing you to make cash offers and get instant mortgages, the ability to sell your house sight-unseen online to these bigger lenders. So, there’s been a lot of changes — and that’s all been driven by technology.
So how is Virtual Lending as a Service really working in this new world?
As we look at lending, and especially as we look at mortgages, it’s such a competitive market. You have a lot of your traditional mortgage companies and banks that take 30 to 60 days to close a mortgage. And when we have this competitive market as we have right now cash is king and cash is winning deals. Some houses are going 100k over the asking price and getting 30-50 offers while not even considering the financing buckets. So it’s put a lot of stress and a lot of strain on people trying to buy houses. And they’re looking for these alternate lending routes to really help them win that offer.
So Video Lending as a Service has really peaked in the 2020 and 2021 post-pandemic world and are really moving to Video Lending Advisors (VLAs). Having a video lending lobby on your website so if somebody does want to do a 1003 or qualify with you being able to build that video relationship. When they click a button, having that video lending as a service advisor on the other end, and being able to see the emotions, be able to build that relationship so when they’re looking at 2-4 lenders, and everyone else they’re talking to on the phone, you’ve already built that relationship with them.
With that kind of business, your conversion rate is going to be significantly higher — 70%+ higher if you can get them on that Video Lending as a Service. So what is video lending as a service and how does it open you up the opportunity to build that relationship and get those emotional connections that sway decision-making power?
If you’re talking to a husband or wife, the ability to add the other partner to the video call and have everybody there on the same page gives you the higher decision-making power and typically increases closing by 84% doing it that way. In addition, it also allows you to really expand your marketing for Video Lending as a Service to your realtor groups doing instant video approvals?
When you’re sitting at the car or sitting at the table in the house you’re looking at and doing that qualification instantly versus the old school way of “Hey, here’s a business card, go call me mortgage guy tomorrow.” In this type of market, you don’t have that type of time. So people are requiring that you prove that you have the financing when you submit the offer or you have the approval letter before you can even submit it offer. So by being able to have that prequalification instantly, while you’re in the home that you’re looking at is a game-changer and the ability to really move that speed of the process.
As the realtor, you can look at the house while the person is in the home and you’re able to connect with one of the lending companies that are doing these instant cash offers. You can have the buyers do a tour of the house and be able to make that instant offer. Then, from a remodeler perspective, you can do video and see major things like bathrooms, kitchens you know, when the AC you can see, you know the unit how old it is and see all those things now in a virtual manner. So Video Lending as a Service, if you’re not into that space yet you need to be as it’s really gaining competitive advantage. It’s really allowing you to build better relationships with realtors, builders, investors, and people wholesaling in that market.
If you’re a bank or a credit union, or if you’re a lender yourself, it’s really allowing you to build those better relationships, the better referrals, higher conversion rate, as well as proactive face-to-face relationships and the convenience that everybody’s looking for.
The mortgage industry over the last 10 years has really been decentralized out of physical locations and has been phone-based, email-based, and online-based for many years. This is really just taking that experience to the next level. So that’s today’s Knowledge Knugget on Virtual Lending.
If you have any questions that you want us to address on the show, feel free to submit those as always subscribes. You can get your show delivered to your inbox weekly on your podcast, player of choice. Thanks everybody. And also click on the link in the podcast notes to download our new white paper on video lending as a service take a read and let us know what you think. Thanks.
Interested in reading more on Virtual Lending? Check out the newest Lending White Paper below!
The State-of-the-Art Video Approach for Virtual Lending as a Service (LaaS) eBook
Join us to learn:
- How Video Lending puts more $ in your pockets.
- See 56% > Conversion Rates.
- How Video Lending as a service works.
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