Why you need a dynamic 1003 loan application

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 of the greatest reasons to have an online 1003 that can be fully customized, is that it allows for experimentation in the amount of information being requested upfront. Lead generation best practices tell us that 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 was 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 setup 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 can be automatically generated and filled with 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.

Want to see a dynamic 1003 in action?

While Floify’s online 1003 has lots of bells and whistles, the flexibility of the software gives you the option to choose which, if any, you want to utilize. Do you love how FormFree’s AccountChek™ automates asset verification? You can automate that functionality to work in your loan application and 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?

If your sole intent is to have somewhere you can send clients you’re already engaged with so that they can fill out a full loan application, then it probably isn’t as important to you to have an easy to navigate, customizable 1003. Your clients will deal with a clunky interface, and spend the time it takes to complete every field because you’ve already 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 is optimized 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 are being started through digital lead generation tools and websites, like Zillow, or 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 will instead 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.