As we move forward in our businesses, there is always a need for financing. You cannot just move forward with a brilliant Idea and no money. It’s as simple as that. Since it is so important, there’s a need to cover the financing. It’s an all-pervasive project that needs to be handled by experts. However, not everyone has their hands on a competitive team.
That is why, in this article, we will cover the exact process in loan origination. Even if you go through some popular Mortgage Loan originator magazines, they will tell you to the general procedure. The specific requirements need to be covered by the business. The whole process is to get your loan approved fast. It is to make sure that there is no hindrance. Have a separate loan origination department, they will take care of everything, starting from pre-qualification to taking care of funding.so, let’s take a look at what they are responsible for.
- The pre-qualification period
Pre-qualification is the time when the borrower has to submit a list of documents to the lender. He has to pull it all together by including all the following papers.
1. Previous bank statements
2. The total revenue for the business
3. Repayment history
4. Bank statements
5. Latest tax returns
With these 5 documents, the borrower can submit the process approval request to the lender. After the loan request is received by the lender, the borrower can move onto the next step.
- Submitting loan application
By loan application, we mean submitting every document offline and online. Yes, you need to provide your documentation through both the mediums. Offline means to present the physical papers. Online documentation is to send an electronic version of the same to preserve for longer. The lender will then decide if you meet the specific requirements of getting the loan sanctioned.
- Processing of the application
The credit department of the lender will then see for completeness and transparency. If you have checked all the fields, the loan will be approved then and there. Otherwise, the application will be sent back.
- The credit decision
Once the application is accepted, the underwriting process starts. The credit goes through your credit report, management, and previous repayment habits. Depending on the situation, the creditor might give you his own score with his own criteria. Sometimes, he might implement a fully e automated process. Then your credit decision is made. If you meet all the parameters, your loan amount is accepted entirely.
- Meeting the regulations
Since lending is highly regulated, you’ll always be under supervision. The creditor implements quality control right when your loan is approved. Many critical variables need to be analyzed to meet the rules and regulations. It’s essential to complete your application and give the money in your hands.
- Funding the loan
It’s the last step that your team has to execute well full stop the Mortgage Loan requires some extra time for compliance and meeting the legal requirements. Loan funding is a careful process that needs to be done the right way. It requires the submission and receipt of all the applications through the necessary mediums. Calculate well and implement the process carefully.
With these 6 points, you are well covered for the process of your loan approval. You cannot miss out on the quality. As a responsible business, be alert and have good repayment habits.