Loan origination is a long process with seven stages including pre-qualification, loan application, application processing, underwriting process, credit decision, quality control, and loan funding. Each stage demands extra care as no lender wants to give a loan to a borrower who cannot pay off. It is important to determine associated risks before approving a loan. When a borrower applies for a car loan, home loan, or any other loan, the application goes through the loan origination process.
The lender can secure more deals by making the loan origination process more efficient. Lending firms use loan origination software to save time and money. There are many loan origination solutions available on the web.
However, you cannot choose any random loan origination solution. First of all, you need to determine your requirements to learn about the features you need in loan origination software. It is just like buying a car. Every vehicle gets you from point A to point B. However, you want to purchase a car that fits your budget, lifestyle, efficiency, and safety requirements. You have to identify all of your needs up front and make sure that the vehicle delivers the desired outcomes.
The same goes for loan origination software. While looking for a loan origination solution for your lending firm, keep in mind that the software can make it or break it. If it offers the required features and efficiency, it can enhance your firm’s efficiency, productivity, and consumer satisfaction. And, if you invest in the wrong tool, it can lead to organizational chaos and revenue losses.
So, set your goals and priorities. Also, identify the existing challenges and outline loan origination software expectations. There are many great products out on the market. However, not all loan origination systems work the same way. So, narrow down your options to choose the right software.
Start with an understanding of your firm’s desired outcomes for the software. Do you need this solution to originate loans from one branch? Will you use it in all branches? Do you need more sophisticated software to originate loans across different channels?
Each lending firm has monthly sales goals. This is an important factor to consider for the selection of a cloud-based loan origination solution. Look for cross-selling functionalities in the software.
The loan origination solution will automate and streamline your workflows. So, you need to develop an understanding of your workflows. Note down your pain points and see if the loan origination solution under consideration can address these pain points.
It is important to understand how customers reach customer support representatives. They typically use the internet and mobile phones to speak to representatives. Make sure that the customer support team can easily address their concerns.
Also, consider the IT support you expect from the vendor. If you have already been using different software then also consider the concerns you had with that software. Discuss your concerns with the new loan origination solution provider.
If you are working with good vendors then you might want to continue working with them. Make sure that your loan origination software vendor supports integration with other tools you are using.
You are going to automate your workflows that are different from other lending firms. Make sure that you are choosing the right tool.