6 Best Practices for the Mortgage Pre-Approval Process

A mortgage pre-approval generator can streamline the process for borrowers. But the right mortgage pre-approval tools can also help lenders nurture strong relationships. Here are some of the best practices for generating effective pre-approvals.

 1. Communicate the Requirements Up Front

Most buyers are unfamiliar with the mortgage pre-approval process. Ensure that you communicate how the process works and what documents are required.
Some buyers may not understand how pre-approval and pre-qualification differ. Educating these applicants can help you build a strong rapport. Doing so increases the odds that they will rely on you for the final loan.

2. Make the Process Accessible Online

One of the best mortgage pre-approval tips is to make the process accessible online. A mortgage pre-approval generator will speed up the process. It will also make it more convenient for applicants.
Therefore, your goal is to remove all friction from the application process. This will prevent applicants from checking out your competitors. It will also help you gather valuable data for your future marketing efforts.

3. Keep Applicants Updated

Under ideal conditions, the pre-approval process is fast and easy. But what if a borrower forgets a vital document? That can slow the process and cause you to lose a potential client.
Thus, contact the applicant immediately to resolve any snags in the pre-approval process. A mortgage CRM can be ideal for staying in contact. You can retrieve the data you need and keep the process moving forward.

4. Consider Alternative Credit Histories

Not every applicant will have a standard financial history. Freelancers and contractors, for instance, won’t have traditional pay stubs or W2s. This can make it challenging to get a mortgage pre-approval estimate.
Also, make sure you can account for non-traditional credit histories. This might include things like Form 1099, contracts, or other financial records. Working with these buyers can help your practice stand out from competitors.

5. Automate the Pre-Approval Process

Automation can streamline the pre-approval process. A mortgage pre-approval generator can provide the tools you need.

For instance, a high-quality pre-approval generator can:

• Dynamically create/retrieve pre-approval letters
• Generate letters automatically based on established criteria
• Customize access and limits to control who can modify financial data

This allows you to generate pre-approval letters quickly while remaining flexible for each client.

6. Adapt to Unique Customer Needs

The pre-approval process can expose some buyers’ lack of financial readiness. This can include buyers with low credit or high debt. Lenders can identify these buyers and connect them to alternative loan programs.

For instance, your practice may offer options such as FHA loans or USDA loans. These can be great options for borrowers who lack a down payment. Use your mortgage pre-approval tools to identify potential candidates for these loans. Then you’ll be better suited to address these unique needs.

Use a Mortgage Pre-Approval Generator

A mortgage pre-approval generator can enhance your business. It also makes things easy for the borrower. The BNTouch platform offers dynamic features and automation. See these features for yourself. Contact BNTouch to schedule your demo.

To learn more or schedule a demo, contact BNTouch today.

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