Here are the top 7 steps of the Loan Origination Process.
Here are the top 7 steps of the Loan Origination Process.
The prospective borrower will now be given a list of the things they must present to the lender in order to be approved for a loan
Step 1: Pre-Qualification
The borrower completes the loan application during this phase. With the help of new technology, applications may now be submitted online or through mobile apps.
Step 2: Loan Application
Processing describes the administrative tasks necessary to get a loan application ready for an underwriter to go at.
Step 3: Application Processing
The borrower’s creditworthiness, income, assets, and liabilities are all examined during this phase, along with the collateral that will be used to secure the loan.
Step 4: Underwriting Process
An application may be accepted, rejected, or returned to the originator for more information depending on the outcomes of the underwriting process.
Step 5: Credit Decision
The quality check phase of the loan origination process is crucial for lenders because lending is heavily regulated.
Step 6: Quality Check
After the loan agreements are completed, the majority of loans finance quickly. LOS can monitor funds and make sure that the appropriate papers are signed prior to or concurrently with funding.