How do you originate a loan, considering both functional and technical aspects?

Question

Accepted Answer

Loan origination involves assessing borrower needs, gathering documentation, and processing applications through a structured workflow.

Identify borrower needs: Understand the purpose of the loan (e.g., home purchase, business expansion).
Gather documentation: Collect necessary documents such as income statements, credit reports, and identification.
Pre-qualification: Assess the borrower's financial situation to determine eligibility and loan amount.
Application processing: Input data into a loan origination system (LOS) for automated underwriting and risk assessment.
Underwriting: Evaluate the application against lending criteria, including creditworthiness and collateral.
Approval and closing: Once approved, prepare closing documents and finalize the loan agreement.