It is virtually impossible these days to find a loan officer’s website that does not have a digital 1003 loan application that prospects can fill out to ‘Apply Now’. While every LO needs mortgage application software, the fact of the matter is that not all online loan applications are made equal, and there are certainly some formats that do more harm than good.

The importance of having a flexible solution

One reason why you should have a fully customizable, online 1003 is that it allows experimentation in the amount of information requested upfront. Lead generation best practices tell us we should make it as quick and easy as possible for a prospect to give you their information.

Finding the optimal balance to get the most information from a prospect, while not scaring them away with a beast of a loan app, is something that typically happens over time and with experience. A customizable 1003 gives you the option to add and remove fields until you find the right mix for your business and makes it quick and easy to adapt to the ever-changing regulatory environment.

Floify’s digital 1003 loan application is built with flexibility and automation in mind. It is fully customizable in the fields that you choose to display in your application, giving you the option to avoid triggering RESPA and the Loan Estimate disclosure.

When combined with Floify’s document collection automation, a Floify customer can set up their account to have a loan flow with basic doc requests automatically created by the submission of the loan application. If you also utilize the Floify Encompass integration, an Encompass Loan File generates automatically and is full of 1003 data.

You could walk into your office on Monday with just the right amount of information and documentation already waiting for you to make a pre-qualification assessment on a prospect. No human intervention required.

It’s no secret that Floify’s online 1003 has many bells and whistles. Interestingly enough, the flexible software gives you the option to choose which, if any, you want to utilize. Do you love how FormFree’s AccountChek™ automates asset verification? Well, you can automate that functionality to work in your loan application. You can even have perfect bank statements to validate the information on the submitted loan app.

Does your existing digital 1003 loan application work for or against you?

It might not be as important for you to have an easy to navigate, customizable 1003 if you already have a solid relationship with customers. Your sole intent might be to have a place to send these clients so they can fill out a full loan application. These clients will deal with a clunky interface and spend the time it takes to complete every field because you’ve established a relationship with them. That doesn’t mean it’s a satisfactory experience, but a tolerable one when paper is the alternative.

For many savvy loan officers, the name of the game is having a loan application that optimizes for submission. The key is to find a balance of required information in your digital 1003 loan application that can give you the information you need to qualify if a prospect is a good fit for your business, while not being so daunting that the prospect doesn’t want to commit the time without having a pre-existing relationship with you.

Today, an increasing number of borrower-lender relationships start through digital lead generation tools and websites, like Zillow. They also might start when borrowers search online for a highly reviewed local mortgage broker and submit a form on their website. If your digital 1003 loan application is too long or cumbersome, you will miss out on these opportunities to win new business that might go to your competition.

There are other regulatory considerations in play as well. By having the full 1003 (that meets the application definition) available on your website, you will have to deliver a Loan Estimate to anyone that submits the application, even if they’re not a good fit.

When evaluating new or current software options for your website’s digital 1003 loan application, make sure to have a defined purpose for the software that can guide your selection, and prioritize a flexible solution to implement your vision.