Mortgage Software Development Guide for 2025: Key steps, Features, Insights

With the growing use of mobile apps and the efforts of B2C businesses to become even more convenient for their customers, mortgage software development is becoming a relevant and strategically beneficial solution.

The digital lending market is expected to grow at a 13.8% CAGR by 2026, reaching $20.5 billion. This growth in valuation can be attributed to increased digitalization, government measures to protect online lending, and expanded opportunities for lenders and borrowers. Drawing on Artkai's years of experience in financial technology, we will take a closer look at the current state of the mortgage app market and share valuable insights on how to develop them. Because mortgage app development is a complex process that requires compliance with many standards, the company can obtain a high-quality, competitive product. 

In this article, we will look at the main types of mortgage software, the key stages of its development, and essential aspects to consider to create a compelling and competitive solution.

In the case of custom mortgage software:

Ready-made Mortgage Software provides: 

However, the key to an effective business strategy is the choice of custom mortgage software development. This can be explained by the fact that regardless of whether your company is a mortgage broker or a large bank, it needs to comply with specific regulatory and legal requirements at the international or local level. 

Therefore, a ready-made solution will not cover the needs of a business in all cases. Moreover, such software has quite a few drawbacks. For example, the standard functionality may not meet the specifics of the company, there may be a lack of integrations with the necessary systems or banking software, and you will also be dependent on the vendor for updates, support, and changes in functionality. Such limitations can become a serious obstacle for companies developing and planning to scale. 

Therefore, an off-the-shelf solution cannot guarantee compliance in all cases. Of course, a lot also depends on the specifics of internal processes, which an off-the-shelf platform cannot fully provide. 

Not all mortgage industry software can have the same functionality and value. For this reason, there are several types of mortgage software. Each type we will list below focuses on solving specific needs. 
The dynamic modern trends in enterprise application software can explain the diversity of this mortgage software. In the article Top Enterprise Application Software for Businesses, the Artkai team has described the best business solutions and features in detail.

Key Mortgage Software Types 

Digitalization has wholly transformed the mortgage industry. Therefore, the mortgage process is significantly different, from processing applications to managing the process to the end client with legal and compliance responsibilities. 

Mortgage software can be divided into the following functional areas:

Loan Processing and Origination Software 

This type of mortgage software is aimed at automating the process of submitting, checking, and approving the mortgage process. It includes the following types of platforms: 

Loan Servicing and Mortgage Management Software

This category's main focus is on maintaining loan accounts, setting up automated payments and their correctness, and ensuring financial control. 

The category includes the following mortgage management software development systems: 

Supplementary Mortgage Tools and Digital Solutions

In addition to the leading platforms for managing and processing mortgage processes, additional mortgage apps include interactive calculators, mobile applications, and digital platforms to increase the convenience and transparency of processes for borrowers, mortgage brokers, and financial institutions. 

Why Businesses Prefer Custom Mortgage Software

Today's financial environment should minimize visits to banks or other institutions and offer businesses a wide range of internal business management capabilities, such as flexible scoring algorithms for customer assessment, automated underwriting, and customized workflow processes. 

Therefore, it is clear that to implement at least one of these functions, you need to use custom mortgage software that would contain critical functionality for your business. Using software development services, companies can create customized mortgage solutions that seamlessly integrate with existing infrastructure. Below, we'll examine why choosing custom mortgage software development services can benefit your business more than a ready-made solution with a limited set of features.

Top features for your custom mortgage software

Custom mortgage software development allows businesses to customize the system to meet their needs and regulatory requirements. As a result, businesses can get a fully customized solution that is easily scalable and integrates with other financial platforms.

Next, let's examine the key functionalities that can be added to custom mortgage software to make it as efficient and profitable as possible.

Mortgage software and its customisation will allow a company to become more competitive in the market than companies with off-the-shelf solutions. Not all integration capabilities can be implemented, and the functionality is not sufficiently configured. 

In addition to a clear vision of the benefits, mortgage software development requires a fully defined process with several key stages. Creating a reliable product requires a team of experienced professionals who can make it safe, convenient, and efficient. 

Therefore, it is worth following a full-fledged roadmap to ensure and achieve the company's development strategy. In particular, in our article on developing a top-notch business application in 2025, Artkai team specialists highlighted the fundamental aspects of creating a top product that will bring positive results. 

Next, we will analyze the main stages of custom mortgage software development based on the experience of many well-known companies and guarantee full-fledged mortgage software at the finish line.

Essential Steps in Mortgage Software Development 

Mortgage software is rather complex, and its development process is also characterised by the observance of many aspects, such as correct operation, selection of the necessary technology stack for system continuity, and an experienced team of specialists who will implement the requests into the product. 

That is why several stages of mortgage software development are necessary for its successful implementation. In particular, mortgage management software plays a key role in optimizing loan servicing: 

Discovery Phase 

The first stage of custom mortgage software development involves forming a clear strategy to solve several issues. 

Suppose the supplier company adheres to the versatility and complexity of the discovery stage. In that case, it can successfully work out the technical requirements and avoid mistakes at the development stage.

Market Research 

Including this item in the development of custom, mortgage software will give a complete picture of the target audience, develop potential advantages of the software, provide a vision of possible gaps in existing solutions, and offer reasons for product modernization. 

To build a strategy, you need to: 

Regulatory Compliance

Successful mortgage solutions must comply with legal regulations, including international standards such as GDPR for the protection of customer personal data, PCI-DSS for payment transaction security, and AML/KYC for identity verification, anti-money laundering, and fraud prevention. 

Compliance with international standards will help to avoid legal problems. 

Prototyping and UI/UX Design 

Designing interfaces that attract attention with their logic and UI/UX perfection is a very important step in building organic interaction with mortgage software. 

High-quality design in the mortgage software development process involves the development of a design team: 

Development

This stage is one of the most comprehensive and requires careful consideration from the development team when choosing and implementing a technology stack. In addition to backend and frontend development, the choice of database, cloud hosting, and API integrations is also worth considering. 

Below, we present an optional stack that can be applied and adapted for the mortgage industry. 

Backend: 

Frontend: 

Cloud providers: 

Testing

Testing is necessary to check that the system works correctly and without failures. Testing takes place in several stages: 

Deployment and Launch

The final stage of mortgage software development involves placing the application on a production infrastructure, taking into account scalability and reliability. 

For this purpose, you can apply: 

Support and Maintenance

Support and maintenance involves maintaining and sustaining system operations to comply with security standards and adapt to market requirements. 

Therefore, in this context, we can distinguish functionality updates and bug fixes, modernization to meet regulatory requirements and integration into new financial services that will meet the pace of development in the mortgage industry.

Conclusions

In today's mortgage industry, digital solutions are crucial in automating processes, increasing efficiency, and improving customer experience. Customized mortgage software allows for deep integration with banking systems, high transaction security, and compliance with regulatory standards. 
Therefore, if your company is striving for innovation in the mortgage lending market, the Artkai team, with many years of experience, is ready to help you create a high-quality product that will elevate your business to the next level.