When you commit to the improvement of your lending process, you can increase the number of completed applications received and extend more loans to qualified individuals. There are several areas of the mortgage loan origination and approvals process that you can focus on improving, to draw in borrowers looking to finance their mortgage.
Your loan origination system should be able to correctly identify the most viable candidates, and be flexible in what tools and numbers are used to determine loan eligibility. Your origination process should be as easy as possible for the applicant. The main focus should be on streamlining the application and approvals process for both the borrowers and your employees, to reduce overall time spent on mundane tasks like document collection and data input, as well as increase the accuracy of pre-qualification upfront for prospective borrowers.
Automate the Pre-qualification Process
The first step in the mortgage loan origination process is pre-qualification when a potential borrower supplies the first pieces of information in order to pre-qualify for their mortgage loan. This time-consuming task of document and information submission can easily be done online. By making this an automated process, you can decrease the number of employee hours spent pre-qualifying people for mortgage loan financing, and still cast a wide net. When you allow home buyers to submit their information and documents digitally, you instantly improve the efficiency of your mortgage lending operations.
Implement a Cloud-Based LOS
By using cloud-based mortgage loan origination system, you gain access to the latest technology in mortgage origination. These tools can help you identify undeserved mortgage loan applicants, and deliver superior customer service. A digitized and automated loan origination system (LOS) not only streamlines the process but allows borrowers to quickly get pre-qualification results, pricing and status information. Mortgage lending operations can move to a new level of effectiveness when appropriate software features are implemented to facilitate the mortgage loan origination process.
Keep Your Borrowers Updated
Nothing is worse from a hopeful home buyer’s side than waiting in limbo, unsure about the status of their mortgage loan application. You can reassure and encourage them by providing a timeline that can tell them what they have completed and what the next steps are. This will help keep them moving confidently through the online mortgage application process. The diagram can be as simple as a horizontal bar split into the different steps of the process, which are filled in as each step is completed. The bar can be both displayed at each stage of the mortgage loan application and approval process and sent via email update to keep the consumer engaged and committed to following through.
Be Transparent During the Closing Process
The mortgage closing process is particularly important for the borrowers because it involves the signing of final, legally binding documents. The closing process is usually complex due to the number of stakeholders involved. According to the CFPB, many borrowers feel that a typical mortgage closing is stressful due to document errors, timing, and various factors. By using tools combined with refined operational requirements to keep the process flow clear and transparent from origination through approval, you ensure that potential borrowers remain informed, empowered and engaged. Continuing that transparency into the closing process is the final step and can successfully conclude the mortgage loan origination cycle.
A cloud-based loan origination system can help your borrowers through the financing process. Using the right solution can improve your mortgage operations, reduce cost, and increase efficiency, profitability and overall satisfaction for borrowers and staff.