Finding the right loan origination system (LOS) for your business can be a daunting task. With a multitude of options available, how can you be sure you’re selecting the right one? It’s important to do your research and consider the needs of your business when selecting a LOS. Here are three tips to help you find the right system for your institution.
1. Evaluate Your Current Process
When considering new systems, it’s essential to first understand how your current process works. By understanding what you’re currently doing, you can identify where there are inefficiencies, areas that are causing bottlenecks, and whether they can be resolved. Accordingly, you can identify how the new LOS can help improve your workflow and minimize any risks of disruption. Again, it’s also important to note that the process you use now may differ from the one you used when you first started your business. As your business grows, changes in your staff, company structure, and even the way people interact may result in a new process. By understanding your current process, you can identify the areas where a LOS can have the biggest impact.
2. Determine the Features You Need
Once you’ve evaluated your current process, you can identify the features of a LOS that will help improve your process. A few features are standard among most LOSs designed for the mortgage industry: By accepting electronic documents and communications, a LOS allows you to receive and send documents electronically. This can help speed up the application process, particularly when it comes to document management. It can also help reduce the number of staff hours spent inputting and scanning documents. An integrated system can accept data from third parties and provide data to third parties. This can help streamline your application process and reduce the number of steps in the process, as well as potential errors. Moreover, an integrated system can also help you manage your risk by providing you with an advanced warning about potentially fraudulent documents.
3. Research and Compare Options
After you’ve evaluated your current process and determined the features you need, you can then research and compare options. Keep in mind that some vendors may offer different LOSs that vary in terms of the features they offer. It’s important to select the LOS that best meets the needs of your business. In addition to researching vendors, you can also engage in online discussion boards related to the mortgage industry. You can post your needs and requirements and see what other business owners are selecting for their LOSs. This can help you get additional feedback and a second opinion on various LOSs.
Finding the right LOS for your business is much more than simply selecting the one with the most features. You also need to consider your budget. You may find that you need to make some sacrifices in order to stay within your budget, but you also need to ensure that you don’t sacrifice features that will actually impact your business operations. By determining your budget upfront, you can focus on solutions that fit your budget without sacrificing important business needs.