Fintech Makes Big Waves in the Housing Market
As technology advances by leaps and bounds every year, industries are changing. One industry experiencing these changes is the housing market and real estate. Fintech in the housing market is giving people more options on how to buy or sell a home. They no longer have to do everything the traditional way. The process has become simpler than ever.
So, what is fintech and how is it affecting the housing market?
Let’s get into the details so you can stay up-to-date on the latest tools that get you closer to your dream home.
What is Fintech?
Fintech, short for financial technology, is the technology that is integrated into financial services. It usually makes things easier for customers. Think of AI mobile chat boxes or virtual assistants on banking apps. Fintech includes:
- Crowdfunding platforms
- Budgeting apps
- Mobile payment apps like Cashapp and Venmo.
How Fintech is Changing the Housing Market
When it comes to fintech and the housing market and real estate, it’s all about convenience. Fintech is making the process of buying or selling a home, so much easier than before.
Buy and Selling Homes
Fintech is now cutting real estate agents out of the home buying and selling equation. Now there are apps or websites that let you sell your home online. Sites like HomeBay allow users to put their homes up for sale on their website where they handle everything and apparently at a cheaper price than real estate agents.
Services like these are much more appealing to those who find the home buying/selling process confusing and tiresome and want everything conveniently done in the palm of their hands.
Fintech is growing rapidly in this industry because at the moment Millennials are the prime market for houses. Their desire for more efficiency, convenience, and security are really driving these changes!
The rental market is also being affected by fintech. Similar to buying/selling a home, fintech has made renting an apartment so much simpler for the tenant and landlord. Property owners can put their rental listings up on apps and potential tenants can shop for the apartments that are right for them.
They can even pay their rent on apps and websites. One example of this is QuintoAndar, a Brazilian website that does all that and more.
There are also websites like Divvy, which buys homes for its customers for them to live in and pay rent. Part of the rent then goes towards homeownership, where the customer can eventually buy the house from Divvy.
Getting a Mortgage
Getting a mortgage to buy a home has become easy with fintech. Current technology lets customers apply for a loan without even having to step into a bank. They can even get pre-approved for a mortgage by just sending in the necessary documents electronically.
An example of this is a company that gives mortgage lenders and other software to make the lending process easier for people.
Signing documents, sending them to the right people and getting them approved is one of the most time-consuming aspects of buying or selling a house. Now, companies are boasting shorter closing times by using apps and websites that streamline the document signing process.
They developed their own app to facilitate these changes in the industry to accommodate their clients’ wants.
Buying a home?
Buying a home and want to have the easiest close possible? Fintech can help you maneuver through your real estate transaction with more ease, but so can New Venture Escrow. We offer tech and tools that make the escrow process fast and easy. If you’ve found your forever home in California, contact us at New Venture Escrow. We’ll simplify the escrow and home buying process for you!
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