Improve Lending Efficiency With A Credit Origination Software

Do you understand the meaning of loan origination? Well, this is a procedure where a particular borrower applies for the desired loan option, and a lender either accepts it or rejects the loan application. The entire procedure consists of every single step from filling in the application correctly to loan disbursement, accepting or rejecting the borrower’s application. Therefore, the system of automating and managing the loan application in the right manner is known to be the procedure of credit origination software system.

The loan origination software differs depending on the type of loan a borrower is opting for.For example, the procedure for personal loans is different from mortgage loans. After loan origination, it is basically the servicing procedure that takes place. This is where everything from disbursement to the repayment is included. Next, the loan origination software and procedure can also differ from one organization to another.

The loan origination procedure is basically a daunting one. In order to experience a successful one, the borrower needs to make sure that the documentation procedure takes place in the right manner. About thirty five to forty days are taken to complete the entire procedure. Therefore, it is specifically because of the loan document software that the procedures take place faster and no time is wasted.

Understanding the stages of loan origination

A number of stages are fulfilled before the procedure  is completed. The initial stages are vital for better customer experience. In addition to this, keep in mind that the procedure will surely differ from one lender to another which is why you need not get confused anywhere. The important steps of the procedure are as follows:

  • Pre-qualification: Also, known as pre screening this is the very first stage of loan origination procedure. Here is when the lender will determine the eligibility of the one applying for the loan. Some essential documents have to be submitted to the lender by the borrower in this stage including an ID proof such as a government card or passport. Secondly, any certificate that explains the current income should also be submitted. Along with it, a bank statement is also required.

After the borrower has submitted all these documents, the lender will verify them. In order to complete the verification, the lenders make use of the best origination software and avoid all the unwanted hassle.

  • Application: During this stage, the borrower provides suitable information in order to request a loan. The lender makes note of all the information and then moves forward with the procedure. Well, the application procedure involves so much paperwork which is primarily why they have swapped to digital portals. It is because of these portals that application procedures are completed in no time. The borrowers need not wait for a longer period of time.

Once both of these steps are completed, the procedure is over and the loan is either dispersed or rejected. Everything depends on the application of the loan and the documents a borrower submits. So make a smart move as a borrower.

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Christophe Rude

Christophe Rude

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