Updated: Jul 8
Various industries are adopting artificial intelligence (AI) to transform different areas of their business. Mortgage is one of those sectors where the adoption of AI chatbots is happening at a rapid pace.
Also known as conversational AI, an AI-powered mortgage chatbot can bring efficiency, automation, and accuracy to the entire journey of mortgage approval.
The process of approving loans for residential or other real-estate usually involves these stages:
Now, we’ll explore how conversational AI can change the way the mortgage process is handled in the industry. But first, let’s talk about the industry challenges.
Challenges Faced in the Mortgage Industry
While managing the loan process across all the above-mentioned stages, mortgage businesses have to overcome a number of challenges.
Huge amount of time spent to complete each and every mortgage loan request.
Low pull-through rate, which means that the ratio of total loan applications and successfully released mortgage loans is lower than desired.
High number of loan abandonment and fallout due to unsure prospective applicants.
High cost of new customer acquisition due to manual processing.
Risks associated with fraudulent applications due to manual lead qualification procedure.
How Conversational AI Creates Digital-First Mortgage Journey
Here are 6 major ways conversational AI can contribute to the transformation of the mortgage industry:
Automate loan advisory
Help consumers select the best-suited home loans, commercial property loans, and other kinds of financing. AI-powered mortgage chatbot can understand the intent of users in real-time and provide relevant information. This ensures that all your customers feel extremely clear about the mortgage details, procedures, and requirements. Hence, they can make an informed decision, which increases the pull-through ratio.
Let house-hunters calculate mortgage through an AI bot, spending not more than a minute. It is essential that you align your services with the fast-paced life of consumers nowadays. There are many mortgage providers available online, so you have to engage mortgage seekers as quickly as possible. Conversational AI can help you do that with a mortgage calculator available across all touchpoints such as your website, WhatsApp, social media, and others.
Fast track pre-approval
Collect bank statements, credit reports, and other documents; analyze candidates to give pre-approvals. All of this can happen without human intervention, where AI bots interact with every prospect and collect required documents, analyze and provide the in-house team with clear reports for quick pre-approval.
Automate mortgage applications
Collect purchase agreements, asset documentation, etc. through conversations. Assist through mortgage applications and complete the analysis automatically. These are the requirements you can automate with AI adoption in the mortgage application process. Loan seekers can receive 1:1 assistance from conversational AI while filling applications. Hence, both businesses and customers get to save time and achieve accuracy throughout the process.
Schedule home appraisals
Coordinate with clients to schedule home appraisals via AI-enabled conversations. This will save your support team from involving in regular calling and attending home appraisal requests from customers. Each customer can choose a convenient time to connect with your business using the bot platform and schedule home appraisals in no time.
Quick data processing
Make mortgage processing and underwriting efficient with quick data harvesting from all existing and new resources. AI mortgage chatbot can collect, remember, and recall information at any given time. This adds exceptional pace to the data processing along with unmatched accuracy. Hence, you can quickly complete mortgage processing and underwriting stages to deliver a top-notch customer experience.