The internal loan process at banks is complex, highly involved and extremely paper intensive. By utilizing technology systems effectively the procedure can be both less time consuming and more understandable. Below is a brief investigation of the steps involved in the formal loan process, explicitly demonstrating the omnipotence of document management.
From the birth of the loan process, a number of documentation is needed including full identification of the property to be financed, the identification of the client including their employment information or sources of income, their current and proposed lodging costs, and a complete financial statement disclosing the client’s assets and liabilities just to name a few (you can see all of the loan application requirements here for more details)
With this package of info, the burden falls onto a loan officer will t to verify all of the above information by contacting the client’s employer, banks, credit bureaus, and other critical third parties. After verifying the information, the loan package is passed off to underwriting. This stage in the process represents a significant headache and major source of delays in the approval process.
Without a formal system to handle the documents within these loan packages, the process can become extremely cumbersome and lends itself to duplication of efforts and miscommunication. Solutions like DocStar LoanWorks, loan processing software can expedite the process for internal loan process and ensures data accuracy. Using the system as a centralized point for collection and review of documentation the approval process can be shortened by days.