While most mortgage brokers and lenders use financial technology (fintech), the same can’t be said for the appraisal industry. While a home loan can be processed in 10 days, the national average time to turn around a real estate appraisal is 17 to 20 days.
The question then becomes, “How can the appraisal industry streamline the appraisal processing and keep up with demand to close loans faster?”
At Kairos Appraisal we’re leveraging technology, data, and analytics to improve the appraisal process, decrease turn times, and create a better borrower experience. By integrating technology into our appraisal process, we’ve shortened our appraisal turn times to less than 10 days last year and increased our Google Reviews rating to 4.9 out of 5 stars.
Not only is our appraisal technology creating a better borrower experience, but it’s also benefiting brokers, reducing risk to lenders, and improving the overall mortgage process.
Appraisal Technology Brings a Better Borrower Experience
Appraisals are required for most home purchases, refinances, and cash-out refinances. It’s an out-of-pocket expense that must be paid upfront instead of as part of the borrower’s closing costs.In fact, it’s the only upfront cost for most loans. Because of this, borrowers deserve to have a better experience during the appraisal process.
However, it’s not uncommon to hear stories from brokers that are fielding calls from their frustrated clients, complaining that they’ve already paid for their appraisal but haven’t heard from the appraiser yet.
At Kairos Appraisal, we understand the problem and we’ve found a solution. By integrating fintech throughout the appraisal part of the mortgage process, we’re able to get the borrower engaged in the process right from the beginning. This gives borrowers more confidence and leads to a better overall experience.
Utilizing fintech also gives access to a lot of data that we analyze to determine which borrowers had a good or bad experience and why. For example: A typical bad experience is not hearing from the appraiser for a week. In contrast, those who gave good reviews were contacted by the appraiser within 24 hours.
By using the data at our fingertips, we can ensure that the borrower is contacted immediately and engaged in the appraisal process from the start.
Appraisal Technology Benefits Loan Officers, Brokers and Lenders
Kairos’ technology also speeds up the loan process. The national average for appraisals is 17 to 20 days; Kairos now averages less than nine days. Quicker appraisal turn times lead to faster closings, happier borrowers, and more loyal real estate agents, thus benefiting all parties involved in a home purchase.
By introducing new technology into the process, we can offer services to our clients that other appraisal management companies simply can’t. By analyzing our data we can dramatically improve workflow, intelligently adjust processes, and more consistently impress our clientele and their many different needs.
Technology also allows Kairos to guarantee the appraisal fee right out of the gate – which is a huge benefit to all parties—no surprises. When the appraisal fee changes after disclosures have been sent out, it can cause problems for everyone, and potentially kill the loan. When loan originators have to go back to the borrower to ask for additional money and redisclose fees (which can delay closing), or cover the additional cost themselves, it can be a deal breaker and at best becomes a frustrating situation for all.
By guaranteeing the appraisal fee upfront, we eliminate all of the hassle and keep the borrower and the loan officer and lender happy.
Appraisal Technology Benefits for Appraisals
So, how does Fintech benefit the appraiser? By leveraging our unique technology, we’re able to provide more accurate information about the subject property to the appraiser before they inspect the property. This gives them a leg up on their research and provides them with a clear understanding of the property from the get go. This is especially important when appraising unique properties.
Additionally, by leveraging technology we can help the appraiser streamline communication and scheduling with the borrower. Creating ease and efficiency in the process allows the appraiser to spend their time doing what they do best.
Our Focus on Data Analytics
At Kairos Appraisal, we use our technology to look at the analytics, find the gaps, and determine where there needs to be a shift. This is how we continue to create a better borrower experience and quickly adapt to what’s happening in local markets.
Kairos is a company driven by data analytics and technology, and by leveraging them both, we’re to create a positive impact for our borrowers, brokers, lenders, and do some of the heavy lifting for our appraisers.
A 20% faster turn time with 4.9-star average customer rating is something we’re extremely proud of and we can attribute that to our analytics, technology, and the talent on our team.
What is something you’d like to see improved with the appraisal process? Share with us in the comments below.