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If you are considering switching from manual underwriting to utilizing a loan origination and management system to process your loan applications, it’s vital to understand the loan origination process. Consider the following 5 steps of the loan origination process:

1. The potential borrower submits a loan application.

Your potential borrower must fill out and submit the loan application to begin the process. Most companies offer electronic loan applications that can be completed on desktop and mobile devices. Tip! Making the application as short as possible and allowing the applicant to save his progress and return can be the difference between a completed or abandoned loan application.

2. The applicant submits pre-qualification documents.

For the applicant to receive funds from a company, they must also submit pre-qualification documents. These documents ensure that the information the applicant put on the application is accurate. Pre-qualification documents can be as extensive as you deem necessary, for example:

  • Address proof
  • Bank statements
  • Credit score
  • ID proof
  • Proof of income

3. The application is processed via your loan origination system (LOS).

Once the applicant submits the completed application, your loan origination system will process the application and either approve, deny, or refer the application to an internal team member. Further, when you partner with Allied Business Systems with your LOS needs, you will enjoy countless benefits of our software and partnership, such as:

  • APIs that accept application data from your website or other external sources
  • Automated decisioning
  • Built-in analytics tool
  • & More

4. The application goes through underwriting and a decision is made.

The application must go through underwriting to determine if the loan that was applied for can be fulfilled based on the applicant’s information. Underwriting can be done automatically, as you can configure your LOS to accept the loan application based on specific criteria and parameters. You can also set up your LOS to defer the loan application to a person if it requires a more in-depth look.

After the application has been assessed, a decision will be made – accept, reject, or defer to a team member.

5. A team member performs a quality check on the application.

The application is sent to a team member for a final assessment, checking the critical variables against rules and regulations. Once the application is approved in the Quality Check, loan document signatures can be captured and disbursement can occur.

Allied Business Systems is here to make the loan origination process seamless.

We proudly offer absVision, a premier loan origination and management software that can handle all aspects of the loan application process. When you utilize a LOS for your business, workflows become faster, and customers receive better service. You can focus on different aspects of your business as you are confident that the loan origination process is being taken care of. Are you interested in learning more? Schedule a demo with us.