3 Ways to Streamline the Mortgage Approval Process

Complexity is common in the financial world. Personal finances and major purchases are riddled with paperwork and confusing processes. Buying a home is no different, but lenders have a unique opportunity to make the transaction easier. As a major player in the mortgage process, it’s integral for you to bring clarity to an otherwise overwhelming transaction. Without a mortgage loan approval and a fair interest rate, would-be homeowners are stuck, potentially missing out on their dreams.

Losing out on homeownership can put life on hold and even impact long-term wealth. Instead of letting a traditionally complicated process take hold, take charge and streamline the mortgage approval process. When you do, you’ll help more clients and devote more energy to qualified loans, improving conversion rates and customer happiness.

1. Screen Potential Clients Thoroughly

An intake questionnaire is a great first step in vetting a potential new client. But an estimated submission of their household income can quickly halt homebuying dreams, especially if they guessed too high.

To start your lender-client relationship off right, develop a tight process for vetting new business. Sit down with key members of your team, and walk through common and bizarre scenarios as you make a list of considerations. Once you’ve collected pages of notes, it’s time to make sense of them.

Common issues may be income disparities, credit challenges, or employment verification issues. Batch the issues your team of pros has identified to develop a checklist for screening. Whether this conversation happens with clients on the phone, through a secure portal, or in person, make sure it flows naturally.

Ideally, you can confirm key information before you get too far into the process. As much as you’d like to help every client, you have to make some tough decisions. You can’t devote precious time to a scenario that simply won’t meet your loan criteria. Conduct verification of income and a soft credit pull before your client starts making offers. If they don’t meet your criteria today, candidly share what factors to work on to improve their chance of future loan approval.

2. Make Paperwork a Cinch and Slash Stress

The amount of paperwork required during the loan approval process rivals few others. Even the documentation needed for an address change at the bureau of motor vehicles can’t compare. Plus, with more documentation only available digitally, your clients are in for a scavenger hunt for paperwork.

As the resident expert, it’s in your best interest to make it easy for your clients to understand what is expected. Create a standard set of document requirements to share during an initial screening call or on your website. Don’t worry about sharing too much — clients typically research online before ever making a phone call. The more transparent you can be, the more qualified clients you’ll start to see.

Consider doing even more than sharing your checklist — create content that supports its necessity. Chances are, you’re not the only mortgage lender in your area, so finding ways to stand out can be challenging. However, you don’t have to rely solely on much-appreciated referrals. You can take matters into your own hands by way of creating helpful, engaging blog content. You can also share this content on social media to connect more personally with potential clients.

Take your knowledge and break down complexity through the art of the written word. While the topics may be old news to you, consider your potential clients. A middle-school history teacher is nose-deep in Revolutionary War content, not debt-to-income ratios. Likewise, a systems engineer is thinking about complex problem-solving, not credit scores. Craft content that reinforces your process and draws potential clients in through helpful, authoritative information.

3. Set Expectations for Communication and Timing

Mortgage loans are your business, so it’s going to occupy your priority list during the work day. However, as important as finding a new home is your clients, you’re likely going to be lower on their priority list. They may only have particular times they’re available during the day to talk, and they have preferred communication methods. Lay out expectations to reinforce your mutual goals.

First, lay out the typical timeline and milestones associated with the mortgage loan type that your clients are pursuing. There may be standard timeframes for pieces of the process, like income verification and credit reporting. Other times, there may be ambiguous timeframes that can be subject to staffing and complexity, like underwriting.

Laying out timeframes can help manage expectations and reinforce the importance of timeliness. When understanding that underwriting can take a week or more, it can motivate clients to provide documentation swiftly. Refer to your previously provided checklist and share how and when to provide the necessary information. If you’re using a secure client portal, help them navigate the account-creation process before deadlines become tight.

Achieve an understanding that your relationship is a partnership and that everyone has a part to play. Identify which parts of the process they can control, like returning information and making smart credit moves. Provide guidance on how to contact you and when they can expect to hear back. Sharing this playbook can reduce complexity and keep the mortgage approval process moving forward with ease.

Build a Repeatable Process So You Can Focus on a Robust Client List

Lather, rinse, and repeat works for a reason. Knowing what to do and when without thinking about it frees your mind for more important things. That’s why honing in on simplification can lead to found time and more energy to devote to your clients.

Use the simplification strategies you’ve uncovered to create checklists, and train your team to follow your process. When you keep your qualifications tight, you can ensure high-quality loans and better conversions. And while commissions are imperative, you can also relish in the fact that you’ve made your clients’ homeownership dreams reality.