• MLO Training and eLearning

  Have a Potential Client Complete an Online Mortgage Application- Part 2

  Posted by Sapna Sharma on September 2, 2026 at 5:14 am

  This material fits well in Part 2. Part 1 gave an overview of the mortgage process. Now, Part 2 explains what new mortgage loan originators (MLOs) should do after a consumer decides to move forward.

  Before writing this section, I checked ARIVE’s latest 2026 support materials. ARIVE now supports Advantage Credit vendors, borrower-specific POS invitations, TBD preapproval files, DU/LPA credential integrations, and loan-file credit reissuance workflows. (ARIVE)

  Part 2: Hands-On ARIVE Tutorial for New Mortgage Loan Originators

  In Part 1 of our mortgage loan originator training series, we explained the complete mortgage process from receiving the initial lead through qualification, preapproval, underwriting, closing, and post-closing follow-up.

  Part 2 gives practical, step-by-step instructions for new MLOs.

  This section explains what a new mortgage loan originator should do after a potential borrower says they want to move forward.

  For Our Workflow, We Use:

  • ARIVE as our Loan Origination System and borrower Point of Sale portal
  • Advantage Credit for mortgage credit reports
  • Desktop Underwriter, commonly called DU, for applicable Fannie Mae loans
  • Loan Product Advisor, commonly called LPA, for applicable Freddie Mac loans
  • LoanSifter by Optimal Blue for product and pricing searches

  Learning How to Use ARIVE

  This training is about more than just learning how to use ARIVE. The goal is to help loan officers understand why each step matters, spot key review points, and know what to check before moving on.

  New loan officers shouldn’t think of ARIVE as just a data-entry tool. The mortgage file you create in ARIVE will be used by the processor, the automated underwriting system, the lender, and the underwriter.

  Make sure your ARIVE account is fully set up before you start working with borrowers. ARIVE’s current loan officer onboarding guidance includes setting up personal information, state licenses, team members, e-signing, credit-vendor credentials, DU credentials, LPA credentials, email integration, and the borrower POS. (ARIVE)

  A New MLO Should Confirm That:

  • Your name and NMLS information are correct.
  • Your state licenses have been entered.
  • Your email is connected.
  • Your email signature is correct.
  • Your borrower portal is active.
  • Your Advantage Credit credentials are connected.
  • Your DU credentials are connected.
  • Your LPA system-to-system credentials are connected.
  • Your team members are properly assigned.
  • Your preapproval letter template is correct.
  • Make sure you complete these steps before sending your first application to a borrower.
  • Check that your credit credentials work before you start working with borrowers, especially if the borrower is waiting on the phone.

  Step 2: Decide Whether You Are Creating a Lead or a Loan File

  After speaking with the consumer, determine where they are in the process.

  A Person Who Says:

  “I might buy next year. I just wanted to know what credit score I need.”

  may still be a lead.

  A Person Who Says:

  “Yes, I want you to qualify me. Send me the application.”

  is generally ready to move forward with the mortgage qualification process. Depending on how your company uses ARIVE, you might start with a lead and convert it to a mortgage application later, or you might create the loan file and invite the borrower right away.

  ARIVE currently requires an email address when creating a file because it serves as the unique identifier for a person’s record. (ARIVE)

  Make Sure You Have the Borrower’s Correct:

  • Legal first and last name
  • Email address
  • Mobile telephone number
  • State where they intend to purchase or refinance
  • Loan purpose

  Always double-check that the information you get from the borrower is correct.

  Step 3: Create the Borrower Record or Loan File in ARIVE

  Once the borrower is ready to proceed, create the appropriate borrower record or mortgage file according to your company’s ARIVE configuration. At this point, only enter information you know is correct. Don’t guess or fill in missing details based on what you think the borrower meant.

  For Example, Do Not Assume:

  • Marital status
  • Occupancy
  • Income
  • Property value
  • Loan amount
  • Citizenship or residency status
  • Ownership percentages
  • Property type

  Let the borrower provide the information, then verify it. If the borrower has not selected a property, handle the application as a TBD (property-to-be-determined) preapproval scenario in accordance with your company’s procedures.

  ARIVE currently supports TBD preapproval workflows and specifically cautions against using a fake property address simply to complete an application. (ARIVE)

  Step 4: Do Not Enter a Dummy Property Address

  This step matters because new loan officers often make this mistake. Suppose your borrower is preapproved to purchase a home but has not yet found a property.

  Do Not Enter:

  • 123 Main Street
  • Don’t enter an address just because there’s a field for it in the system.
  • A property address is one of the six pieces of information that can trigger the TRID definition of an application.

  For a TRID-Covered Mortgage Transaction, the Six Items Are:

  1. Borrower’s name
  2. Income
  3. Social Security number to obtain a credit report
  4. Property address
  5. Estimated property value
  6. Mortgage loan amount sought

  Once the consumer submits all six, the Loan Estimate timing requirement is generally triggered. (Consumer Financial Protection Bureau)

  For a borrower who has not selected a home, follow your company’s TBD/preapproval procedure.

  Step 5: Send the Borrower the ARIVE POS Invitation

  The next step is to send the borrower access to the secure ARIVE borrower portal. ARIVE borrowers can currently begin by using the loan officer’s POS URL or by receiving an email invitation linked to a specific loan file. (ARIVE)

  When you’re working with a borrower, it’s best to send them a secure application invitation that’s linked to their specific file.

  Tell the borrower something similar to:

  “I am sending you a secure mortgage application through ARIVE. Please complete the application as accurately as possible. If you are unsure about something, don’t guess. Call or text me and I will help you.”

  Giving this explanation can help avoid problems and save time later. If there are two or more borrowers, do not have everyone share one login. ARIVE currently allows each borrower to receive a separate secure invitation to their portion of the application. Co-borrowers do not have to share sensitive information, such as Social Security numbers or credit information, with one another through the portal. (ARIVE)

  Make Sure You Know:

  • Who is borrowing?
  • Who will occupy the property?
  • Is there a non-occupant co-borrower?
  • Are the borrowers applying jointly?
  • Whose income will be used?
  • Whose assets will be used?
  • Who will be on the note?
  • Who will be on the title?

  Keep in mind, not everyone buying the property is automatically a borrower.

  Explain the 1003 Before the Borrower Starts

  The mortgage application is commonly called the 1003, URLA, or Uniform Residential Loan Application. Fannie Mae and Freddie Mac currently divide the URLA into nine major sections. (Fannie Mae)

  A new MLO should understand every one of them. Don’t just tell the borrower to fill out and return the application without explaining it first. Take a moment to explain what they’ll see in the application.

  Step 8: Section 1 of the 1003 — Borrower Information

  Section 1 contains the borrower’s personal, residence, employment, and income information.

  This is one of the most important parts of the application.

  The Borrower Will Generally Provide Information Concerning:

  • Legal name
  • Social Security number
  • Date of birth
  • Citizenship or residency information, when applicable
  • Contact information
  • Current residence
  • Previous residence when needed
  • Housing status
  • Dependents
  • Current employer
  • Position
  • Employment dates
  • Base income
  • Overtime
  • Bonus
  • Commission
  • Military income
  • Self-employment
  • Previous employment
  • Other sources of income

  Fannie Mae’s current URLA instructions state that the previous-employment portion is used when necessary to provide the applicable employment history, including periods such as unemployment or time spent as a student or homemaker. (Fannie Mae)

  What the MLO Needs to Check

  Do not assume that the income listed on the application is always qualifying income.

  Borrower Enters:

  • Monthly income: $10,000
  • Your job is to determine:

  Can I actually use $10,000 for a mortgage qualification?

  You May Need to Separate:

  • Base pay
  • Overtime
  • Bonus
  • Commission
  • Self-employment
  • Second-job income

  Form 1003 shows what the borrower reports earning. But the documentation and mortgage rules decide what income you can actually use.

  Step 9: Section 2 — Assets and Liabilities

  Section 2 covers financial assets and personal debts.

  Assets May Include:

  • Checking
  • Savings
  • Money market accounts
  • Retirement accounts
  • Stocks
  • Bonds
  • Investment accounts
  • Other eligible financial assets

  The borrower may also disclose other assets or transaction credits.

  The Liability Section Can Include:

  • Credit cards
  • Auto loans
  • Student loans
  • Personal loans
  • Installment debt
  • Leases
  • Other obligations

  Fannie Mae’s URLA instructions specifically tell borrowers to report debts that may not appear on the credit report, deferred debts, and debts expected to be paid off before or at closing. (Fannie Mae)

  What the MLO Needs to CheckLater, You Are Going to Compare:

  1003 liabilities → credit report liabilities

  Do Not Assume the Credit Report Includes Every Debt. The Borrower May Have:

  • A new car loan is not yet reporting
  • A private loan
  • Child support
  • Alimony
  • A business obligation that needs evaluation
  • A co-signed loan
  • Deferred student loans
  • Another debt that does not normally appear

  This is why it is important to communicate with the borrower both before and after obtaining the credit report.

  Section 3 identifies real property that the borrower owns or property for which the borrower is obligated on a mortgage.

  This section is often completed incorrectly.

  The Borrower May Need to Disclose:

  • Primary residence
  • Second homes
  • Investment properties
  • Vacant land
  • Properties pending sale
  • Mortgage loans
  • HELOCs
  • Taxes
  • Insurance
  • HOA dues
  • Rental income

  Fannie Mae’s current instructions state that a borrower should report associated mortgage debt when obligated on the mortgage, even if their ownership relationship to the property is different. (Fannie Mae)

  What the MLO Needs to CheckFor Every Property, Determine:

  • Property value
  • Mortgage balance
  • Mortgage payment
  • Taxes
  • Insurance
  • HOA
  • Occupancy
  • Rental income
  • Will it be retained or sold?

  Don’t just import a mortgage from the credit report and overlook the property it’s linked to.The real estate owned section can materially affect DTI, reserves, rental-income calculations, and AUS findings.

  Step 11: Section 4 — Loan and Property Information

  This section deals with the mortgage transaction itself.

  Information Can Include:

  • Purchase or refinance
  • Property address
  • Estimated value or purchase price
  • Loan amount
  • Occupancy
  • Property characteristics
  • Other financing
  • Gifts or grants

  Wrong information in this section can completely change the loan.

  For Example:

  Primary residence versus investment property

  can affect:

  • Eligible programs
  • Down payment
  • Interest rate
  • LLPAs
  • Reserve requirements. Do not select an occupancy type solely to obtain more favorable pricing.

  The application needs to reflect the borrower’s true intended occupancy.

  Step 12: Section 5 — Declarations

  The declarations section asks important questions about the deal and the borrower. Take your time answering these.

  Depending on the Application, They Can Involve Matters Such As:

  • Ownership interest
  • Relationship to the seller
  • Borrowed funds
  • Other mortgage applications
  • New credit
  • Liens
  • Co-signing
  • Judgments
  • Federal debt
  • Lawsuits
  • Foreclosure
  • Deed in lieu
  • Short sale
  • Bankruptcy

  A new MLO should reA new MLO should review every “yes” answer carefully. necessarily mean the borrower cannot qualify.

  It Means You Need To:

  • Investigate.

  Ask:

  • What happened?
  • When did it happen?
  • Is it resolved?
  • Do we need documentation?
  • Is there a waiting period?
  • Do not alter a declaration answer simply because it may present an underwriting challenge.

  Step 13: Section 6 — Acknowledgments and Agreements

  Section 6 contains borrower acknowledgments concerning the mortgage application and the use and verification of information. The borrower’s application must show the real information they provided. MLOs should never coach borrowers to hide anything. If there’s a problem, find a real solution. Never make a false mortgage application.

  Step 14: Section 7 — Military Service

  This section collects information concerning the borrower’s or, when applicable, deceased spouse’s military service. (Fannie Mae)

  This is especially important when checking for VA loan eligibility. If a borrower says they have military service, don’t assume they automatically qualify for a VA loan, but don’t miss possible VA eligibility either.

  Step 15: Section 8 — Demographic Information

  This is the demographic information section required as part of the mortgage application process.

  The loan officer should carefully follow company procedures.

  Avoid the Following:

  • Guess
  • Pressure the borrower
  • Coach the borrower on how to answer
  • Alter responses

  Follow the instructions in the application and your company’s compliance rules.

  Step 16: Section 9 — Loan Originator Information

  Section 9 identifies the mortgage loan originator and applicable originator information.

  Make Sure Your:

  • Name
  • Company information
  • NMLS information

  Make sure the above are accurate. That’s why your ARIVE user profile needs to be set up correctly before you start originating loans.

  Step 17: Wait for the Borrower to Submit the Application

  • When the borrower submits the application, don’t run DU right away.
  • Do not send it to a wholesale lender immediately.
  • Don’t issue a preapproval right away.

  First:

  • Review the application.
  • Just because a borrower enters information into ARIVE doesn’t mean it’s correct.

  1003 From Beginning to End

  • Go through the entire application.
  • Look for obvious problems.

  Examples:

  The borrower says they have worked somewhere for 3 years, but the employment start date shows 3 months ago. Borrower says they pay $1,500 rent, but the application says no housing expense. The borrower shows an investment property but no mortgage.

  • Borrower reports $200,000 in assets but entered a $2,000 checking account.
  • Borrower says they are buying a primary residence 1,500 miles from their current job.
  • None of these automatically means the loan is bad.

  They Mean:

  • Ask questions.
  • A mortgage loan officer should get good at spotting inconsistencies.

  Before pulling a consumer’s credit, follow your company’s process for obtaining and documenting authorization and permissible purpose.

  • A name
  • Date of birth
  • Social Security number
  • Address
  • Always follow your company’s policy.
  • Our team uses Advantage Credit.

  ARIVE’s current list of supported credit vendors includes Advantage Credit. (ARIVE)

  Step 20: Pull the Mortgage Credit Report Through Advantage Credit

  Once the application has been reviewed and the required authorization has been obtained, access the credit function in the ARIVE loan file and use the Advantage Credit integration configured for your company.

  Your exact vendor name can vary depending on the Advantage Credit connection your organization uses.

  Make Sure You Select the Correct:

  • Borrower
  • Co-borrower when applicable
  • Credit vendor
  • Report type
  • Company-authorized credit workflow

  If credit was previously pulled through an external credit vendor portal, ARIVE’s current guidance states that it may need to be reissued into ARIVE for the report to populate properly in the loan file. (ARIVE)

  Step 21: Do Not Stop at the Credit Score

  A common mistake new loan officers make is pulling credit and only looking at the score.

  They See:

  • 742
  • and think:
  • “Great borrower.”

  Or They See:

  • 562

  And Think:

  • “Bad. This approach does not constitut“Bad.”

  But just looking at the score isn’t enough. You need to review the full mortgage credit report.entity Information

  Start at the top of the report.

  Verify:

  • Correct borrower
  • Social Security information as permitted
  • Current address
  • Prior addresses
  • Any obvious identity discrepancies

  If information appears to belong to another person, stop and investigate. Do not continue processing until any discrepancies have been investigated. Review the applicable mortgage credit scores being reported. For multiple borrowers, understand which score will be used for the loan program and transaction.

  Do not promise a borrower an interest Don’t promise a borrower an interest rate based only on their credit score. Loan approval depends on more than just credit

  Go through the debts.

  Look at:

  • Credit cards
  • Auto loans
  • Student loans
  • Installment debt
  • Mortgages
  • HELOCs
  • Personal loans
  • Other reported obligations

  You are trying to determine what month. You need to figure out which monthly debts count when calculating DTI shown in the report, in all circumstances.

  Agency and lender rules may require a different treatment for certain debts.

  Step 25: Look for Student Loans Carefully

  Student loans lead to many qualification errors.

  Determine:

  • Current balance
  • Reported payment
  • Whether the payment is zero
  • Whether the loan is deferred
  • Whether the loan is in repayment
  • Loan program being considered

  Then apply the correct FHA, VA, USDA, Fannie Mae, Freddie Mac, or investor guideline.

  Do not assume that the same student loan calculation applies to every mortgage program.

  Identify:

  • Collection accounts
  • Charge-offs
  • Medical collections
  • Non-medical collections
  • Dates
  • Balances
  • Disputes

  Again, don’t tell a borrower to pay off a collection account until you know the right guidelines. Different mortgage programs treat collections differently. Determine the applicable guideline before giving the borrower instructions.

  Step 27: Review Late Payments

  Look For:

  • Mortgage lates
  • Auto lates
  • Credit-card lates
  • Student-loan lates
  • Recent delinquency patterns

  Pay close attention to the recent mortgage payment history. A borrower might have a good credit score but still have a payment history that causes problems in mortgage underwriting.

  or Derogatory Credit

  Look for Evidence of:

  • Bankruptcy
  • Foreclosure
  • Short sale
  • Deed in lieu
  • Repossession
  • Serious delinquency

  Compare what appears on the report with the declarations on the 1003.

  If the borrower answered “No” to bankruptcy and you see a bankruptcy, ask why.

  It Could Be:

  • Borrower error
  • Reporting error
  • Misunderstanding
  • Something requiring further investigation

  Never assume fraud right away if you find a discrepancy.

  Step 29: Review Credit Inquiries

  Look at recent inquiries.

  Ask whether the borrower has taken on new debt.

  For Example:

  “I see an auto-finance inquiry from two weeks ago. Did you purchase or lease a vehicle?”

  The new account may not be reporting yet. That payment could materially change the borrower’s DTI.

  Step 30: Reconcile the Credit Report With the 1003

  Now compare the mortgage application with the credit report.

  Think:

  • Does everything match?
  • If the credit report shows an auto loan missing from the application, investigate.
  • If the application shows a debt that is missing from the credit report, investigate.
  • If a mortgage appears on credit but the borrower did not list real estate, investigate.
  • Your goal is to get an accurate picture of the borrower’s debts before running automated underwriting.

  Step 31: Calculate Qualifying Income Before Running AUS

  This is another mistake new mortgage loan originators often make. Simply take the income the borrower entered on the 1003 and run DU or LPA. First, determine what income is reasonably supportable under the applicable mortgage guidelines.

  For a salaried borrower, this may be straightforward.

  For a Borrower With:

  • Overtime
  • Bonus
  • Commission
  • Multiple jobs
  • Self-employment
  • 1099 income
  • Rental income
  • Pension
  • Social Security
  • Additional analysis may be required.

  The Automated Underwriting System (AUS) is only as reliable as the information you put in.

  Verify the Assets Entered on the 1003Ask:

  • Does the borrower have enough for the down payment?
  • Closing costs?
  • Reserves?
  • Earnest money?
  • Required funds after closing?
  • Is there a gift?
  • Is there down payment assistance?
  • Are large deposits going to require documentation?

  You don’t need every final document before your first AUS analysis, but the information you enter should be reasonable and accurate. Before you submit to DU or LPA, double-check the main loan details.

  Review:

  • Purchase or refinance
  • Loan amount
  • Purchase price
  • Estimated value
  • Property type
  • Occupancy
  • Number of units
  • Loan term
  • Mortgage program
  • Down payment
  • LTV
  • CLTV when applicable
  • Income
  • Assets
  • Liabilities
  • Real estate owned
  • Subject-property information

  For a preapproval without a selected property, follow the company’s TBD procedure rather than creating a fictitious property. ARIVE currently supports running DU for TBD preapproval scenarios. (ARIVE)

  Step 34: Run Desktop Underwriter — DU

  • When a conventional loan may fit Fannie Mae guidelines, you may run Desktop Underwriter.
  • Your DU credentials need to be configured in ARIVE before submitting.
  • ARIVE specifically includes DO/DU credentials in its new-user setup process. (ARIVE)
  • Submit the loan using your company’s approved ARIVE workflow.
  • If you encounter a credentials error, do not assume the issue is with the borrower.
  • DU credential errors often result from incorrect or expired Fannie Mae credentials in the system. (ARIVE)

  The Entire DU FindingsDo Not Run DU, See:

  • Approve/Eligible
  • and then stop reading the findings.
  • Read them.

  Look For:

  • Income documentation requirements
  • Asset documentation
  • Employment verification
  • Credit requirements
  • Property requirements
  • Appraisal requirements
  • Reserves
  • Additional conditions
  • Messages requiring action
  • An Approve/Eligible result doesn’t mean nothing else matters.
  • The underwriter still needs a complete and accurate loan file.

  Step 36: Run Loan Product Advisor — LPA When Appropriate

  If Freddie Mac may be a better fit, run LPA according to your company’s workflow. ARIVE’s current onboarding requires system-to-system LPA credentials for users who submit through the integration. (ARIVE)

  AgaAgain, make sure all the information you entered is correct. Review the full feedback certificate.o not look only for the overall recommendation.

  Step 37: Learn When DU and LPA Give Different Results

  This is something every new conventional loan officer eventually learns.

  The Same Borrower Can Sometimes Receive a Different Result Through:

  • DU

  versus

  • LPA

  One system may produce an acceptable recommendation when the other does not. Documentation requirements may also differ. That doesn’t mean you should change the loan file just to get a better result. Instead, learn how both conventional underwriting systems work and choose the right one for your borrower.

  Step 38: Correct Problems and Rerun AUS When Necessary

  Suppose You Run DU and Discover That:

  • Income was entered incorrectly.
  • A liability was omitted.
  • Assets were overstated.
  • Occupancy was wrong.
  • The property type was wrong.
  • Correct the file.
  • Then rerun the AUS.
  • Don’t leave wrong information in the loan application just because the first results looked good.
  • The application must show the borrower’s real situation.

  Step 39: Determine Whether the Borrower Is Actually Qualifiable

  At this point, you should know much more than you did during the first telephone call.

  You now have:

  • 1003 + credit + liabilities + income + assets + AUS

  Ask Yourself:

  • Can this borrower qualify today?
  • There are generally three outcomes.

  Outcome 1: Borrower Qualifies

  • Proceed toward pricing and preapproval.

  Outcome 2: Borrower May Qualify With AdjustmentsExamples:

  • Pay down credit cards.
  • Pay off an installment account.
  • Add an eligible co-borrower.
  • Reduce purchase price.
  • Increase the down payment.
  • Document additional income.
  • Correct inaccurate credit.
  • Resolve an underwriting issue.

  Outcome 3: Borrower Does Not Qualify Yet

  Don’t give up on the lead. Make an action plan if needed.

  Some Borrowers Need:

  • 30 days
  • 90 days
  • Six months
  • One year

  A borrower who doesn’t qualify today might close a loan with you in the future.

  Step 40: Open LoanSifter

  Once you understand the borrower’s qualifications, you can intelligently search for lenders and pricing.

  Our Team Uses LoanSifter by Optimal Blue

  LoanSifter currently provides mortgage brokers with product and pricing searches across more than 120 wholesale investors and supports conforming, government, nonconforming, Non-QM, home-equity, and construction scenarios. (Optimal Blue)

  Don’t use LoanSifter until you fully understand the borrower’s qualifications.

  Step 41: Enter the LoanSifter Scenario Accurately

  The exact fields can vary by product and account configuration, but your pricing scenario should accurately reflect the borrower and transaction.

  Pay Attention to Items Such As:

  • State
  • Property location
  • Purchase or refinance
  • Purchase price
  • Property value
  • Loan amount
  • LTV
  • CLTV
  • Occupancy
  • Property type
  • Number of units
  • Credit score
  • DTI
  • Loan program
  • Loan term
  • Lock period
  • Escrows when applicable
  • Cash out when applicable
  • Other scenario-specific characteristics

  One wrong field can significantly affect the pricing results. For example, choosing a primary residence instead of an investment property can yield completely different pricing.

  can produce completely different pricing.

  Step 42: Use the Same Borrower Information You Used to Qualify the Loan

  Do Not Have:

  • ARIVE Scenario A

  and

  • LoanSifter Scenario B.

  Your pricing assumptions should match your qualification assumptions every time.

  If ARIVE Shows:

  • 680 FICO
  • 85% LTV
  • Investment property
  • $300,000 loan

  Do Not Price:

  • 700 FICO
  • 80% LTV
  • Primary residence
  • $300,000 loan
  • just because the pricing looks better on paper.

  Review Eligible Lenders and Products

  LoanSifter allows you to compare available mortgage products from numerous wholesale investors. (Optimal Blue)

  Review the results carefully.

  Do Not Automatically Select the Lender at the Top of the List.

  • Price
  • Points
  • Lender credit
  • Product
  • Lock period
  • Loan amount requirements
  • Credit requirements
  • Property restrictions
  • DTI requirements
  • Investor overlays
  • Turnaround times
  • Underwriting flexibility
  • Broker compensation
  • Special program requirements

  The lender with the lowest price isn’t always the best choice if they won’t approve your borrower.

  New loan officers commonly focus too much on rate.

  Experienced Mortgage Professionals Ask:

  Will This Lender Close This Loan?

  Suppose Lender A has a slightly better rate but has an overlay that disqualifies the borrower.

  • Lender B has slightly different pricing but accepts the borrower’s scenario.
  • Lender B may be the appropriate execution.
  • Your job is to find the mortgage solution the borrower can actually close—not just the lowest rate you see.

  Step 45: Check the Actual Lender Guidelines

  • LoanSifter helps identify products and pricing.
  • It doesn’t replace your job to check lender guidelines.
  • If anything about the borrower is unusual, confirm they’re eligible before you recommend a lender.

  Examples Include:

  • Manual underwriting
  • Recent bankruptcy
  • Chapter 13
  • Foreclosure
  • Low credit scores
  • High DTI
  • Non-occupant co-borrowers
  • Self-employment
  • One-year tax returns
  • Multiple financed properties
  • Condominiums
  • Manufactured homes
  • Non-warrantable condos
  • Non-QM income
  • Bank-statement loans
  • DSCR
  • Foreign nationals
  • ITIN borrowers

  Do Not Assume:

  • Don’t assume a good rate means the lender will accept the loan.
  • Pricing eligibility and underwriting eligibility still need to be confirmed.

  Step 46: Narrow the Results to the Best Mortgage Options

  You may initially have many lenders.

  Narrow the options.

  For Example:

  • Option A — FHA
  • Option B — Conventional
  • Option C — VA

  or:

  • Lender A
  • Lender B
  • Lender C

  Borrowers don’t need to see a list of 40 lenders. Show them only the best options.Sifter currently supports side-by-side product comparisons designed for comparing borrower options. (Optimal Blue)

  Step 47: Review the Numbers Before Calling the Borrower

  Before Presenting Anything, Independently Check:

  • Purchase price
  • Down payment
  • Loan amount
  • Interest rate assumptions
  • Principal and interest
  • Taxes
  • Homeowners insurance
  • Mortgage insurance
  • HOA
  • Estimated closing costs
  • Estimated cash to close

  Ask Yourself:

  Does this payment make sense?

  If youIf your system shows a payment of $1,800 but you expected $3,000, don’t call the borrower right away. Remember, processors rely on the information you provide. Processors don’t replace your own professional judgment.

  Qualification of the Borrower

  Now call the borrower.

  Do Not Simply Email a Rate to the Borrower. For Example:

  “Based on your application, credit, income, assets, and the underwriting analysis we completed, you currently appear to qualify up to approximately $350,000, subject to final underwriting and the property.”

  Then Explain:

  • Recommended loan program
  • Estimated down payment
  • Estimated payment
  • Estimated funds required
  • Keep your communication clear and make sure your explanation is easy to follow.
  • Remember, you’re a mortgage professional—not just a pricing tool.

  Step 49: Do Not Promise Final Approval

  Even With:

  • Completed 1003
  • Credit
  • Documents
  • DU approval
  • Do not tell the borrower that approval is guaranteed or that all requirements have been met.

  A preapproval remains subject to underwriting and applicable conditions.

  Those Can Include:

  • Income verification
  • Employment verification
  • Assets
  • Credit
  • Property
  • Appraisal
  • Title
  • Insurance
  • Program eligibility
  • Lender requirements
  • Continued qualification

  Be careful to use accurate language.

  Always Use Accurate Language

  Before moving on, make sure ARIVE reflects what happened.

  Document important information in accordance with company policy.

  Examples:

  • Borrower conversation
  • Program discussed
  • Qualification issues
  • Follow-up needed
  • Documents requested
  • Credit issues
  • AUS result
  • Pricing discussion
  • Action items

  ARIVE currently maintains an activity history in the loan file to track file actions and changes. (ARIVE)

  Detailed file notes help protect everyone and save time when another team member works on the file.

  The New MLO Rule: Never Send a Dirty File Forward

  Before the File Goes to an LOA, Processor, Lender, or Underwriter, Ask:

  • Is the 1003 accurate?
  • Did I review the credit report?
  • Did I reconcile the liabilities?
  • Did I calculate the income?
  • Did I review the assets?
  • Did I verify the real estate owned?
  • Did I run the appropriate AUS?
  • Did I read the AUS findings?
  • Did I price the correct scenario?
  • Did I verify that the lender accepts the scenario?

  If you answer ‘No’ to any of these questions, you likely have not completed the borrower qualification process.

  This is the Workflow a New MLO Should Be Able to Follow Confidently:

  Borrower Says Yes

  ↓

  Create Lead/Loan File in ARIVE

  ↓

  Send Secure POS Invitation

  ↓

  Borrower Completes 1003

  ↓

  MLO Reviews 1003

  ↓

  Obtain Credit Authorization

  ↓

  Pull Advantage Credit

  ↓

  Review Complete Credit Report

  ↓

  Reconcile Liabilities

  ↓

  Calculate Qualifying Income

  ↓

  Review Assets

  ↓

  Review Real Estate Owned

  ↓

  Calculate DTI

  ↓

  Build Correct Loan Scenario

  ↓

  Run DU and/or LPA

  ↓

  Read the Findings

  ↓

  Correct Issues and Rerun if Necessary

  ↓

  Determine Eligible Mortgage Program

  ↓

  Enter Accurate Scenario Into LoanSifter

  ↓

  Compare Lenders, Products, Rates, and Guidelines

  ↓

  Verify Lender Eligibility

  ↓

  Present Mortgage Options to Borrower

  ↓

  Request Remaining Documents

  ↓

  Prepare for Preapproval and the Next StageWhat a New Mortgage Loan Originator Should Learn From Part 2

  To become a skilled mortgage loan originator, you need more than just ARIVE navigation skills.

  You become a good loan officer by understanding what the information really means.

  When You Look at a 1003, You Should Be Thinking:

  • What am I missing?
  • When you look at a credit report:
  • What can hurt this loan?
  • When you calculate income:
  • Can I document this number?
  • When you run DU or LPA:
  • What are the findings actually telling me?
  • When you open LoanSifter:
  • Which lender actually fits this borrower?
  • This is what separates people who just enter applications from true professional mortgage loan originators.
  • Don’t guess at mortgage guidelines.
  • Check agency guidelines, lender rules, underwriting resources, your manager, or your company’s compliance department.

  Accuracy:

  • Always prioritize accuracy over speed.
  • Some with experience.
  • Put accuracy ahead of speed in every part of the mortgage process.
  • Aim to be both accurate and efficient.

  Part 3 would also be helpful: “From Preapproval to Submission:

  The LO, LOA, and Processor Workflow.” It could show where the MLO’s job ends, what the LOA checks and prepares, what goes to the contract processor, who handles conditions, and how all three roles work together without repeating tasks. That would make Parts 1–3 a true new-MLO operating manual.

  

  support.arive.com

  Which Credit Vendors Are Supported in ARIVE?

  The following Credit Vendors are currently supported in ARIVE Advantage Credit Advantage Credit Bureau Advantage Credit, Inc. by Credit Interlink Advantage Plus Credit Alliance 2020 American Reporting Company Birchwood Credit Services Ce...

  Sapna Sharma replied 1 minute ago 1 Member · 0 Replies
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