4 Tips to Preparing a Mortgage

As an originator, you’ll prepare mortgages from start to finish to ensure that everything goes according to plan and your company can boost its revenue. The mortgage loan preparation process isn’t easy, but it is straightforward. If you follow the process, you can prepare a mortgage with ease. Here are tips for preparing a mortgage.


1.  Talk to Prospects

To prepare a mortgage, you’ll need to talk to prospects to close the deal. The first step for preparing a mortgage is talking to potential borrowers and determining their needs, goals, budget, and loan options. When someone sends you their information, it means that they are actively seeking more information on the homebuying process, so you should start nurturing your leads as soon as possible

2. Use the Right Tools

When it comes to determining if a prospective borrower can be pre-approved for a loan, you’ll need to use the right software, including origination software and credit reporting software. You should also make sure that you have sales software that can integrate with your other software so that all of the information you need is in one place, such as credit scores, the application process, loan products, and job history.

 Some of the tools that you use should go beyond software. For example, when you’re planning to buy or sell loans, you’ll need mortgage secondary market pricing information that can help you make important decisions.

3. Reviewing Pre-Approval Applications

With the help of your software, you can easily review pre-approval applications and confirm important information, including credit score and income, which can help you make a decision when it comes to approving or denying an applicant. During this time, you’ll also do research on the current market to determine how much an individual can afford to borrow.

4.  Underwriting

Once a borrower finds a home, they’ll need to get the loan in order to make a purchase, which means that you’ll need to review their application through an underwriting process. This is when you ask for additional documentation, which can be put into your software for safekeeping and tracking. You should automate as much of the underwriting process as you can so that you can assess multiple applications at once.

Automated underwriting is fast, but it has limitations, so make sure that you review anything that was done by a computer so that you can ensure all of the information is correct.

The underwriting process will require you to deep dive into a borrower’s financials and employment situation to confirm that they have the ability to repay their loan if you approve their application.

Becoming More Efficient

While software can help you speed up some tasks, you’ll need to devise a process that includes all of your software and resources so that you can make it routine. The underwriting process can take a few days to a few weeks to complete because you have to confirm so much information. The best thing that you can do is become more efficient without sacrificing quality in your work.

You can streamline all of your processes to make the underwriting process quicker. While a manual review of all applications might be necessary, there are some tasks, such as sending emails, that can be automated based on your decision. Make sure that no matter what the decision on an application is that you call your prospect directly to let them know the good or bad news. This can help you build a relationship with them so that the next time they are ready to apply for the loan, they will come straight to you instead of researching the competition.


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