What Slows Down the Mortgage Process (and How to Speed it Up)

A traffic signal with a green light, which signifies loan officers can speed up the mortgage process.

Like middle school, the mortgage process is one of the situations in life where it’s perfectly acceptable to want to get it over with as soon as possible. When it comes to the mortgage process, closing loans faster is never a bad idea, as long as you have all the tools you need to get it done without errors. Homebuyers and loan officers alike often thank the heavens when a loan is closed. 

Here are a few ways to close loans faster and get on with your life already. Sheesh. 

Unorganized documentation process.

As a loan officer, details like the applicant’s credit history, employment history, debt, and savings are completely out of your hands. However, the responsibility of collecting and filing these details lies directly in your hands. Being speedy and efficient with this information by setting up a strategy can help you cover all your bases. 

Double-check all documents.

Rushing to turn in your applicant’s paperwork can cause double work. If one piece of information is left out in their paperwork, the underwriter could refuse to accept it altogether. Make sure to explain this to your applicant, too. Not only will you close loans faster this way, but you’ll also avoid the frustration and embarrassment attributed to telling your client that they have to re-do the paperwork, ultimately delaying their mortgage process and pushing back their move-in date. 

Package the documents. 

Stay one step ahead of your clients’ needs by proactively providing additional information regarding the paperwork that they’re required to complete. This will help your clients stay informed of what they need to complete, why this is a requirement, and when it needs to be turned in. Properly informing your clients also means fewer questions for you to answer. 

Compliance issues.

To serve clients, provide a great experience, and add value to the loan process, it’s important to be knowledgeable on regulations and guidelines that could impact a client’s home buying journey. Unfortunately, lending guidelines constantly change, which makes it hard to close loans faster and please your clients. To make matters worse, many guideline search interfaces are slow and outdated. 

Identify subject matter experts.

Rather than attempting to stay up-to-date on guidelines with outdated technology, identify and connect with the subject matter experts in your org. Relying on teammates who are knowledgeable about guidelines and regulations can reduce double work and inconsistent information. 

Use AI to find accurate information.

What was once reserved exclusively for big players like Google and Microsoft, AI is now a tool for the mainstream. Using AI with NLP, machine learning, and a reliable knowledge base can eliminate the hoops you typically have to jump through to locate information and knowledgeable teammates. Not only will AI lessen your work, but you’ll also be able to close loans faster. 

Switching between apps. 

How much time do you take searching for information during the day? According to an article by TechRepublic, employees switch apps more than 1,100 times a day. There’s a lot of useful technology available to assist in the mortgage process. However, the issue with so many different tools is that information often gets siloed. 

For example, Ellie Mae’s tools like Encompass and AllRegs are extremely helpful when accessing policy and client information during the mortgage process. Unfortunately, it can be extremely time-consuming and distracting for a loan officer to jump into Encompass to find specific customer details, then open AllRegs to search for specific policy details. Keep in mind, this number only increases with the number of clients a loan officer has. 

Integrations. 

When it comes to solving the issues technology oftentimes presents, the only solution is better technology. Integrations between apps can mediate the jumping from one app to the next. Capacity is a knowledge sharing platform that has more than 50 integrations to software like AllRegs and Encompass, so loan officers only have to go one place to access details. The chatbot functionality of Capacity enables loan officers to find all the information they need by simply asking via chat—just like they would ask a colleague.

“Capacity is really good at answering questions about loan guidelines. It saves a ton of time. And if it ever doesn’t know the answer to a question, it can find the person who does”

a USA Mortgage loan officer in an anonymous survey

Bottom line, bringing on efficient software that allows teams to do their best work can speed up the mortgage process. However, starting healthy processes helps save time during the loan process.

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