Getting someone’s attention is the required first step for engagement. Mortgage lenders know this well and work hard to get the attention of prospective borrowers. Once the lender has the borrower’s attention, the work of winning the business can begin.
One of the best tools for getting borrowers to buy into the new relationship with a lender is the prequalification. The more consumers a lender can prequalify, the more loans are likely to make it through the origination process to close. It’s not as good as a loan approval, but it’s an important first step.
But recently, we’ve been hearing vendors promise to help lenders offer conditional loan approvals, which sound great but are actually nothing but prequalifications with a fancy name. We wrote about this and provided the definition of the conditional loan approval recently on HousingWire.
Lenders are very eager to get more business in today’s environment. It can sound very appealing to offer borrowers a document that might keep them engaged through the origination process. That document is nothing but a conditional loan approval and can only happen after the underwriting process has been completed.
Don’t fall for promises that the vendor can’t keep. Besides, when we can provide all of the information the lender’s underwriting department needs to deliver a conditional loan approval within 48 hours allowing the lender to close within 21 days, why to pay someone else for less. To know more about Coforge BPS and our mortgage solutions, reach us at CoforgeBPS@coforge.com or visit https://www.coforge.com/bps/.