By John Brown
In a perfect world, mortgage lenders could automate as many processes as possible to make the loan application process easier for borrowers. Unfortunately, this isn’t an ideal world. However, that doesn’t mean lenders can’t automate specific processes to make the mortgage application process smoother for everyone involved. This blog post will discuss major mortgage processes that lenders can automate. Stay tuned!
Loan processing is the first mortgage process that lenders can automate. The loan processing stage includes verifying a borrower’s employment status, income, and asset information, which are all looked into when coming up with a loan estimate. Lenders can speed up the overall loan application process by automating this stage.
When you request small cash loans from digital lending platforms like GetCash.com, they also automate this part of the loan request process. That’s why submitting an application for a loan on these platforms is relatively faster than if you were to work with traditional lenders. Filling in an online loan application takes mere minutes and is secure. Once submitted, lenders will scan your application and approve it at their earliest convenience.
The appraisal process is another one that can be automated. In a nutshell, the appraiser assesses the value of the property used as collateral. This protects the lender and the borrower by ensuring that the loan amount is appropriate for the property’s value. Using AI and data analytics for this process saves time and money and lessens the error rate on such reports.
Underwriting is yet another process lenders can automate. During this stage, the lender reviews all of the borrower’s information to determine whether or not they are a good candidate for a loan. That includes things like credit score, employment history, and asset information. By automating underwriting, lenders can ensure that loans are approved faster and with fewer errors.
This mortgage process involved a lot of paperwork and staffing, leading to human errors. Nowadays, with automation technology, lenders customize a portal where customers can easily submit and access their documents. Because of this, the document collection process has become more efficient. Moreover, there is transparency as both lenders and customers are aware of the status of the application.
Title and escrow management include:
● Ordering title insurance
● Preparing documents for closing
● Coordinating with the real estate agent and loan officer.
In this area, automation will provide much-needed transparency and help streamline the process to avoid delays.
After a lender funds a loan and the borrower moves into their new home, the servicing of the loan begins. That includes collecting monthly payments, managing escrow accounts, and handling customer inquiries. By automating these processes, lenders can provide a better experience for their borrowers while freeing up staff to focus on other tasks.
This last mortgage process step is when the borrower signs the loan documents and officially becomes responsible for the loan. To make this process go smoothly, lenders can provide borrowers with a closing disclosure outlining all of the loan’s final terms. By doing this, borrowers will be sure of what they’re signing up for, and there will be fewer surprises down the road. Automating this process is critical in avoiding errors like overestimating or underestimating fees.
After the loan has been funded and the borrower has moved into their new home, the lender’s job is not done yet. They still need to manage the customer relationship and provide outstanding service. By automating specific processes, like sending monthly statements and payment reminders, lenders can free up staff to focus on more critical tasks. Additionally, automation can help lenders keep track of customer inquiries and complaints so that they can be addressed promptly.
Automation is becoming increasingly important in various industries in today’s fast-paced world. Lending is no exception. Automating time-consuming tasks can free up staff to focus on more critical aspects of the loan process. In addition, lenders can improve their decision-making accuracy by automating essential tasks, such as document collection and approval.
As a result, automation can help lending processes in many ways, from improving efficiency to boosting accuracy. So if you want to streamline your lending operations, consider investing in automation. You might find it’s the best thing you ever did for your business.
John is a financial analyst but also a man of different interests. He enjoys writing about money and giving financial tips, but he can also dive into relationships, sports, gaming, and other topics. Lives in New York with his wife and a cat.