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home / Loans and Lending

The Mortgage Lending Process Should Mimic Online Shopping

31 May 2022
mortgage lending process mimic online shopping

Lenders must accelerate the mortgage lending process to keep today’s impatient customers happy. As consumers have become increasingly comfortable with online shopping and digital ordering, they’ve become less tolerant of delays and disruptions. According to a recent survey, more than 40 percent of customers believe slow and unresponsive service is at the heart of subpar customer service.

Today’s consumers want what they want, right when they want it—and not just retail purchases and restaurant takeout. They bring the same expectations when shopping for other services, such as mortgage loans. To earn online credibility & close more loans, mortgage lenders need to get to “yes” faster to meet the demands of today’s home shoppers.

However, for most lenders, saying “yes” to a mortgage takes time. But the main roadblocks to efficient mortgage approvals can be eliminated through automation. Lenders can leverage the power of automation to streamline the mortgage underwriting process, speeding up approvals and helping ensure borrower satisfaction.

Turn times to close within the interest rate lock-in period

Traditionally, mortgage lenders process multiple rounds of document requests after a lengthy review process. It may be necessary to request and review many documents during the loan approval process, and 30 or 60 days later, before closing the loan, the lender may need to process many of the same documents again.

However, automation makes it possible to accurately process documents earlier in the mortgage lending process, shortening the time needed to close the loan. When documents can be approved and verified more quickly, turnaround times shrink and documents don’t get the chance to age out of the approval range. This eliminates the need for additional rounds of request and review. By reducing the need for multiple loan approval rounds, it’s possible to close loans quicker.

Provide quick and accurate pre-qualifications

Many borrowers have to wait through a lengthy mortgage approval process as underwriters attempt to verify their income and analyze their risk level. For example, borrowers who have non-W2 income or short credit histories may present challenges for traditional mortgage lenders who have standard requirements.

However, an automated solution can allow lenders to undertake better income analysis with pre-populated income worksheets. With quicker upfront calculations based on verified information, mortgage lenders can provide more reliable pre-qualifications, allowing them to capture more of the market.

For example, North Carolina-based Deephaven Mortgage, which provides non-qualified mortgage loans, often serves borrowers with non-W2 income or individuals who don’t meet other standardized requirements. Deephaven partnered with Ocrolus to automate its bank statement analysis, which measures the borrower’s actual cash flow to provide a more accurate assessment of income. This automated process enables Deephaven to calculate real income in a matter of minutes and save more than two hours of underwriters’ time on each application.

Boost borrower satisfaction

When borrowers can choose the specific format or system through which to share their information, they’ll be more satisfied. In addition, automated systems typically provide borrowers with multiple options for uploading and sharing their documents.

An automated system can provide an applicant with an immediate response, from confirming that documents have been received to requesting more information. With automation, the mortgage lending process moves faster and with better accuracy: Customers gain more flexibility, underwriters benefit from standardized and verified information, and responses can be immediate.

Today’s borrowers want quicker turnaround times for mortgage approvals and loan closures. By using automation to speed up the process and improve efficiency and accuracy, mortgage lenders can better meet borrowers’ needs, ultimately improving customer satisfaction.

Learn more about how Ocrolus can help automate the mortgage lending process and assist lenders in effectively serving today’s impatient consumers.