{"id":6929,"date":"2017-09-01T14:01:10","date_gmt":"2017-09-01T14:01:10","guid":{"rendered":"https:\/\/habiletechnologies.com\/?p=6929"},"modified":"2022-07-22T07:45:03","modified_gmt":"2022-07-22T07:45:03","slug":"loan-origination-trends","status":"publish","type":"post","link":"https:\/\/wiki.cloudbankin.com\/index.php\/2017\/09\/01\/6929\/loan-origination-trends\/","title":{"rendered":"Latest Trends in Loan Origination"},"content":{"rendered":"

[vc_row][vc_column width=”3\/4″][stm_post_details][vc_column_text]When it comes to the purchase of assets such as vehicles or real-estate, the requirement of capital to buy an entire asset out of savings is impractical. For buyers who look to purchase such as assets in a short-time period, availing loans is the easiest method to raise capital for such massive investments.
\nHowever, if one has spent time trying to avail a loan in the past, one must be quite aware of the time it takes for the loan amount to be disbursed. While borrowers may assume that this is an avoidable delay by the lender, the truth is that lenders do not provide loans in an ad hoc manner.
\nFor every loan to go from the stage of applying for the loan by the potential borrower to the final release of funds, there are several crucial steps in the process that lenders adhere to before parting with capital. These methods are referred to as Loan Origination, involves a thorough verification of borrower\u2019s credentials and the risk involved in the retrieval of the loan before the loan gets approved (or declined, in cases where there is a trust deficit).[\/vc_column_text][vc_single_image image=”11552″ img_size=”medium” alignment=”center”][vc_column_text]<\/p>\n

Image Credit: AGA AMERICA<\/a><\/p>\n

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[\/vc_column_text][vc_custom_heading text=”Traditional loan origination process: An Overview” font_container=”tag:h2|font_size:30px|text_align:left” use_theme_fonts=”yes”][vc_column_text]There are six distinct phases in the traditional loan origination<\/a> process: <\/span>
\n1. Pre-Qualification<\/b>: It is a screening process in which the current finances and debts of a client are processed before they file a loan application. (When it takes place: 1 day from applying)<\/span><\/span>
\n2. Application<\/b>: It refers to the first step of the process where an applicant files his request for a loan alongside the purpose of the loan. (When it takes place: From days 1-5 of application)<\/span><\/span>
\n3. Opening The File<\/b>: It involves gathering and screening of all the information furnished by the borrower and verifying its authenticity. (When it takes place: From days 3-10 of application)<\/span><\/span>
\n4. Processing<\/b>: Here, all the information is screened and checked for discrepancies. If any discrepancies are found, the borrower is asked for a written explanation. (Time: 5-25 days)<\/span><\/span>
\n5. Underwriting<\/b>: The \u201cprocessor\u201d sends his comments and findings to his who decides upon whether or not to approve the loan. (When it takes place: From days 15-25 of application)<\/span><\/span>
\n6. Pre-Closing<\/b>: During this time, title insurance is allocated for the loan along with other contingencies. The time for closing the loan is also fixed. (Time taken: From days 20-30)<\/span><\/span>
\n7. Closing<\/b>: All loan processing formalities are completed at this stage and the lender funds the loan for the borrower in exchange for the title of the property. (Time taken: From days 30-45)<\/span><\/span>[\/vc_column_text][vc_single_image image=”6948″ img_size=”large” alignment=”center”][vc_custom_heading text=”Benefits of the Traditional Loan Origination Process” font_container=”tag:h2|font_size:30px|text_align:left” use_theme_fonts=”yes”][vc_column_text]<\/p>\n