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How To Have a Potential Client Complete an Online Mortgage Application
In this thread, we will cover how to have a potential client complete an online mortgage loan application. We will cover a step-by-step process for the mortgage process, from getting the initial lead (whether it is an organic lead from your website, social media platform, referral, or your mortgage company assigning you a branch-provided lead). The first step is to contact the consumer either by phone call, text, or email to arrange a mutually agreeable day and time to discuss the needs of the borrower. Every mortgage loan originator has their own method of communicating with the borrower. In this thread, we will cover the way me and my team qualifies a borrower and the software we use. For the Loan Origination System, we use ARIVE. For credit pulls, we use Advantage Credit. For pricing engines, we use Loan Sifter. We will explain how the process works: STAY TUNED!!!
Step-by-Step Mortgage Loan Origination Process for New Mortgage Loan Originators
For new mortgage loan originators, mastering the art of guiding borrowers smoothly from first hello to final closing is essential. This journey covers every step, from application and qualification to preapproval and underwriting.
While every mortgage loan originator brings their own communication style, the process itself should always feel organized, consistent, compliant, and easy for borrowers to navigate.
This guide walks you through the exact process my team uses to deliver a top-notch borrower experience.
Our primary mortgage technology includes:
- ARIVE for our Loan Origination System and online borrower portal
- Advantage Credit for mortgage credit reports
- LoanSifter by Optimal Blue for mortgage product and pricing searches
- Desktop Underwriter, or DU, when applicable
- Loan Product Advisor, or LPA, when applicable
ARIVE includes a Loan Origination System and borrower Point of Sale portal that allows borrowers to complete applications, upload documents, and communicate with their mortgage team. (ARIVE)
LoanSifter is a mortgage product and pricing engine designed for mortgage brokers and currently provides access to pricing from more than 120 wholesale investors. (Optimal Blue)
Here is the step-by-step process we follow, starting when a new mortgage lead arrives.
Step 1: Receive the Mortgage Lead
A mortgage lead can come from many different sources.
Examples Include:
- An organic lead from your website
- Google or another search engine
- Facebook, LinkedIn, YouTube, TikTok, or another social media platform
- A real estate agent
- Past clients
- Attorneys
- Builders
- Financial professionals
- Friends or family members
- A referral partner
- A company-generated lead
- A branch-provided lead
- A consumer who directly calls your office
No matter where your lead comes from, your first priority is not to sell a mortgage right away. Instead, focus on making a genuine connection and truly understanding what the borrower needs.
Record the lead in your company’s approved system and document its source.
Step 2: Make the Initial Contact
Contact the potential borrower by the communication method permitted by your company’s policies and applicable law.
This may include:
- Telephone
- Text message
During your first conversation, introduce yourself and schedule a time that works for both of you to begin the mortgage qualification interview.
If the borrower is pressed for time, save the full mortgage consultation for when you both have enough time to focus.
You Might Say Something LIke:
“Thank you for contacting me regarding mortgage financing. I would like to learn more about what you are trying to accomplish and review your options with you. When would be a convenient time for us to speak for about 20 to 30 minutes?”
Schedule the appointment and add it to your calendar.
Step 3: Prepare for the Mortgage Qualification Interview
Before Calling the Borrower, Review All Information Provided with the Lead. Know:
- The borrower’s name
- State
- Estimated purchase price
- Estimated credit score
- Loan purpose
- Approximate down payment
- Referral source
Do not assume all preliminary information is accurate. Treat this information as your launching pad. The real goal of the interview is to paint a complete picture of the borrower’s unique situation.
If you are just starting out, keep a checklist handy during interviews. This way, you will never miss a key question and every applicant gets the same thoughtful attention.
Step 4: Start With the Borrower’s Goal
Before discussing FHA, VA, conventional, Non-QM, interest rates, or underwriting guidelines, ask the borrower what they are trying to accomplish.
For a Homebuyer, Determine:
- Are they currently under contract?
- Are they shopping for a home?
- Are they simply planning for the future?
- What price range are they considering?
- How much money do they want to put down?
- What monthly payment would they be comfortable with?
- What state are they purchasing in?
- Will this be a primary residence, second home, or investment property?
- Are they working with a real estate agent?
- When would they like to purchase?
For a Refinance Borrower, Determine:
- What is the estimated property value?
- What is the existing mortgage balance?
- What is the current interest rate?
- What is the current payment?
- Are there additional liens?
- Is the borrower seeking cash out?
- What is the purpose of the refinance?
Hold off on suggesting any loan programs until you have a clear grasp of what the borrower truly wants to achieve.
Step 5: Conduct the Initial Financial Interview
Next, begin gathering the information necessary to determine whether the borrower appears capable of qualifying.
Ask about employment and income.
Determine:
- Employer
- Job title
- Length of employment
- Previous employment, if applicable
- Base hourly or salary income
- Average hours worked
- Overtime
- Bonus
- Commission
- Self-employment
- 1099 income
- Pension
- Social Security
- Disability income
- Rental income
- Other income the borrower wants considered
Keep in mind, not every dollar a borrower earns will count toward mortgage qualification. Only income that meets agency, lender, investor, and underwriting standards will make the cut.
For example, if a borrower says, “I make $100,000 per year,” the underwriter will not automatically use $8,333 per month as qualifying income. Proper documentation is essential.
Step 6: Discuss the Borrower’s Monthly Debts
Ask about monthly obligations.
These May Include:
- Auto loans
- Student loans
- Credit cards
- Personal loans
- Installment loans
- Existing mortgages
- Home equity loans
- Co-signed debts
- Child support
- Alimony when applicable
- Other recurring obligations that may need to be included
You will later compare this information with the borrower’s mortgage credit report. The purpose is to estimate the borrower’s debt-to-income ratio, commonly called the DTI ratio.
Do not just take the borrower’s word for it. Double-check for small credit cards, co-signed loans, student loans, deferred debts, and those rarely used accounts that can easily slip through the cracks.
Step 7: Discuss Down Payment, Assets, and Reserves
Ask the borrower where the money for the transaction will come from.
Possible Sources Can Include:
- Checking accounts
- Savings accounts
- Money market accounts
- Retirement accounts
- Investment accounts
- Sale of another property
- Gift funds
- Down payment assistance
- Other acceptable documented sources
Ask approximately how much the borrower currently has available.
Also, determine how much of that money the borrower actually wants to use.
Remember, just because a borrower has a certain amount saved does not mean they want to use it all for this transaction.
A truly effective loan officer looks beyond just closing the deal and considers how the borrower will be positioned financially after the transaction.
Before ordering the mortgage credit report, ask whether the borrower knows approximately where their credit stands.
You Can Ask About Major Credit Events Such As:
- Bankruptcy
- Foreclosure
- Short sale
- Deed in lieu
- Mortgage late payments
- Collections
- Charge-offs
- Judgments
- Recent late payments
- Federal debt
- Student loan defaults
Talking about credit history upfront helps prevent surprises when you review the credit report together. Stay professional and never judge a borrower’s credit past. Your role is to understand their story and find a mortgage solution that fits their needs.
Every borrower deserves the same level of professional service, whether their credit is spotless or has a few bumps along the way.
Step 9: Explain the Online Mortgage Application
Once the initial conversation indicates the borrower wants to proceed, explain that the next step is to complete a secure online mortgage application.
Our team uses the ARIVE Borrower Point-of-Sale portal.
ARIVE allows borrowers to complete their mortgage application online and securely upload supporting documents. Borrowers can access the application through the loan officer’s borrower portal URL or receive an invitation to a specific loan. Before you send out any applications, make sure your ARIVE account is set up correctly and ready to go.roperly configured.
ARIVE’s Current Onboarding Guidance Includes Setting Up:
- Personal information
- State licenses
- Team members
- E-signature
- Credit-vendor credentials
- DU credentials
- LPA credentials
- Borrower POS settings
- Preapproval templates
(ARIVE)
Step 10: Send the Borrower the ARIVE Application
Confirm the Borrower’s:
- Correct legal name
- Email address
- Mobile telephone number
Then send the borrower a secure ARIVE portal invitation using your company’s workflow. Borrowers may also begin through the appropriate loan officer’s borrower POS link. If there is more than one borrower, ensure each receives secure access to complete their portion of the application. ARIVE supports separate invitations, so co-borrowers do not need to share sensitive information. Do not ask borrowers to send Social Security numbers, bank statements, tax returns, driver’s licenses, or other sensitive information via text message.
Use your company’s approved secure system.
Step 11: Tell the Borrower What to Complete
The borrower should complete the online mortgage application accurately.
Depending on the Transaction and Your company’s ARIVE Configuration, the Application May Request Information Concerning:
- Borrower identification
- Current residence
- Previous residences
- Employment
- Previous employment
- Income
- Assets
- Real estate owned
- Liabilities
- Loan purpose
- Property information
- Declarations
- Other information required for the Uniform Residential Loan Application
Remind borrowers not to guess if they are unsure about any questions. Encourage them to reach out for help. You can guide them over the phone, but every answer must reflect their actual situation.
Step 12: Do Not Enter a Fake Property Address
This is especially important for new mortgage loan originators. If a property is not selected, do not enter a fictitious property address just to complete the application. ARIVE specifically warns that entering a dummy address for a borrower who has not selected a property can unintentionally trigger TRID disclosure requirements. (ARIVE)
Follow your company’s procedure for a property that is still TBD—to be determined.
Step 13: Understand When the TRID Application Is Triggered
New mortgage loan originators need to understand the difference between talking with a lead and receiving an application for purposes of the TRID rule.
For a Mortgage Transaction Covered by TRID, the Application Definition is Triggered When the Consumer Submits These Six Pieces of Information:
- Name
- Income
- Social Security number to obtain a credit report
- Property address
- Estimated property value
- Mortgage loan amount sought
Once those six pieces have been submitted, the creditor generally must ensure the Loan Estimate is delivered or placed in the mail no later than the third business day after receiving the application. (Consumer Financial Protection Bureau)
New loan officers must recognize when a lead becomes a complete application.
Additionally, be aware that other mortgage laws and reporting requirements may define an application differently. Always adhere to your company’s compliance procedures, not solely the TRID definition.
Do not initiate a credit pull or submit the loan to a lender solely because the borrower has submitted the application.
Review the application before proceeding to address any missing or inconsistent information.
Compare what was entered with what the borrower told you during the initial interview.
Check:
- Employment dates
- Income
- Residence history
- Assets
- Real estate owned
- Existing mortgages
- Loan amount
- Purchase price
- Occupancy
- Property type
- Declarations
If you spot any inconsistencies, ask the borrower to clarify. Never change important details just to make the numbers work.
The application must accurately reflect the borrower’s actual circumstances.
Our Team Uses Advantage Credit for Mortgage Credit Reporting
Advantage Credit provides mortgage credit reports using information from one to three major credit bureaus, including Experian, Equifax, and TransUnion. (Advantage Credit)
Before obtaining a consumer report, follow your company’s procedures for documenting the borrower’s authorization and permissible purpose.
Your Company May Use:
- A mortgage tri-merge credit report
- A company-approved prequalification credit product
- A soft-pull process before a full mortgage credit report
Always use the procedure your company has approved. Never pull a credit report solely because you have someone’s Social Security number.
Step 16: Analyze the Mortgage Credit Report
Once the report is available, review more than just the middle credit score.
Review the entire report.
Look At:
- Mortgage scores
- Monthly liabilities
- Credit card minimum payments
- Installment loans
- Student loans
- Mortgage history
- Collections
- Charge-offs
- Late payments
- Public-record information when reported
- Recent inquiries
- Authorized-user accounts
- Disputed accounts
- Co-signed obligations
- Credit utilization
- Credit history
Compare the liabilities on the credit report with the liabilities disclosed on the application. If something does not match, investigate before moving forward. A standout mortgage loan originator digs into every detail of the credit report, not just the score at the top.
Step 17: Calculate the Borrower’s Qualifying Income
The next major step is determining what income can actually be used. Review the applicable guidelines and supporting documentation.
Depending on the Borrower, This Might Include:
- Pay stubs
- W-2s
- Tax returns
- 1099s
- Business tax returns
- Social Security award documentation
- Pension documentation
- Bank statements
- Verification of employment
- Other acceptable documentation
Step 18: Calculate the Borrower’s Housing Payment and Ability to Repay
Calculate qualifying income according to the loan program being considered. Resist the urge to tweak income numbers just to hit a target debt-to-income ratio. Ensure that the method used to calculate qualifying income is thoroughly documented.
Once the qualifying income has been established, calculate the borrower’s proposed housing expense and total monthly obligations.
The Proposed Housing Payment May Include:
- Principal
- Interest
- Property taxes
- Homeowners insurance
- Mortgage insurance
- HOA dues when applicable
- Flood insurance, when applicable
- Other required housing expenses
Then calculate the total debt-to-income ratio. Do not base qualification only on principal and interest. Remember, taxes, insurance, mortgage insurance, and HOA dues can all tip the scales when it comes to borrower qualification.
Step 19: Review LTV, Down Payment, Assets, and Reserves
Determine:
- Purchase price or property value
- Loan amount
- Loan-to-value ratio
- Combined loan-to-value ratio when applicable
- Required down payment
- Estimated closing costs
- Available borrower funds
- Required reserves
- Source of funds
By now, you should have a crystal-clear snapshot of who your borrower is and what they need.
Step 20: Determine Which Mortgage Programs May Fit
Now compare the borrower’s profile with potential mortgage programs.
Examples May Include:
- Conventional
- FHA
- VA
- USDA
- Jumbo
- Non-QM
- Bank statement
- 1099
- DSCR
- Asset-based programs
- Other specialty mortgage products
Step 21: Review Loan Options That Benefits Borrowers
Do not automatically assign borrowers with lower credit scores to FHA loans. Similarly, do not automatically assign high-credit borrowers to conventional loans. Take a step back and look at the whole transaction before making your recommendation. The best loan product is the one that truly fits the borrower’s needs, goals, and unique circumstances.
For agency mortgage loans, run the appropriate automated underwriting system when required and when you have sufficient accurate information.
This May Include:
- Fannie Mae Desktop Underwriter
- Freddie Mac Loan Product Advisor
Review the entire findings report.
Do Not Simply Look For:
- Approve/Eligible
- or Accept/Eligible
- Read the conditions and documentation requirements.
- Just because you get an automated underwriting approval does not mean you can overlook the details.
- If you enter inaccurate information, the results will not be reliable.
Step 22: Price the Loan Through LoanSifter
Once the borrower has been properly qualified and you understand the scenario, price the loan. Our team uses LoanSifter by Optimal Blue.
LoanSifter allows mortgage brokers to search loan products and pricing across numerous wholesale investors and compare eligible mortgage options. (Optimal Blue)
Enter the scenario accurately.
Important Pricing Information Can Include:
- Loan purpose
- State
- Property type
- Occupancy
- Purchase price
- Appraised or estimated value
- Loan amount
- Credit score
- LTV
- DTI
- Loan type
- Lock period
- Escrow preference when applicable
- Other scenario-specific characteristics
Step 23: Mortgage Loan Program vs Mortgage Rates
Never adjust the scenario just to show a rate that the borrower cannot actually get. The lowest rate shown on a pricing engine is not always the best choice for the borrower.
Review:
- Product eligibility
- Investor guidelines
- Lender overlays
- Interest rate
- Discount points
- Lender credits
- Mortgage insurance
- Turnaround times
- Underwriting requirements
- Lock policies
- Property restrictions
- Credit requirements
- Documentation requirements
Securing a smooth, successful closing matters far more than dazzling the borrower with an unrealistic interest rate.
Step 24: Present the Borrower With Appropriate Mortgage Options
After you have finished your analysis, set up another chat with the borrower to walk them through their options.
Explain what you found.
For example:
“Based on the information and documentation we have reviewed so far, I see two possible options for you.”
Then Explain:
- Loan program
- Estimated down payment
- Estimated loan amount
- Estimated payment
- Mortgage insurance, when applicable
- Approximate funds needed
- Major qualification requirements
- Advantages
- Disadvantages
Do not drown first-time homebuyers in a sea of mortgage jargon.
An effective loan officer simplifies complex processes to enhance borrower understanding.
Step 25: Request Supporting Documentation
After the application is complete, provide the borrower witSkip the one-size-fits-all document list. Tailor your requests to each borrower’s unique situation. borrowers the same extensive list of document requests.
A salaried W-2 employee will need different documents than a self-employed business owner.
Common Documents Can Include:
- Government-issued identification
- Recent pay stubs
- W-2s
- Bank statements
- Tax returns when required
- Retirement statements
- Bankruptcy documents, when applicable
- Divorce decree, when applicable
- Mortgage statements
- Homeowners insurance information
- Documentation for additional real estate
- Letters of explanation when legitimately needed
ARIVE allows borrowers to upload supporting documents through its borrower portal, including from supported mobile devices. (ARIVE)
Use the secure borrower portal whenever possible.
Step 26: This is Where Seasoned Loan Officers Stand Out
Never rely only on what the borrower puts in the application.information provided by the borrower in the application.
Review the documentation.
Compare:
- All the pieces should fit together seamlessly.AUS → Guidelines
- Everything should make sense together.
- If the borrower claims $8,000 in monthly income but documentation supports $5,500, use the documented income for qualification.
- If there is a discrepancy between reporSpot and resolve any issues before your borrower makes an offer, not at the last minute before closing.
- Tomorrow, the borrower makes an offer, rather than just before closing.
Step 27: Issue the Appropriate Prequalification or Preapproval
Once the loan has been reviewed in accordance with your company’s procedures, issue the appropriate letter. Different mortgage companies define prequalification and preapproval differently, so follow your company’s written policies.
Ensure the borrower understands that preapproval does not guarantee the mortgage will close.
The Final Loan Can Remain Subject to Matters Such As:
- Complete underwriting
- Acceptable documentation
- Property eligibility
- Appraisal
- Title
- Insurance
- Continued: Never promise that a loan will close—there are always variables beyond your control.
- Do not guarantee that a loan will close.
The Borrower Shops for a Home
Keep the lines of communication open after you send the preapproval letter. Regular check-ins show borrowers you are with them every step of the way.
- The real estate agent, when authorized and appropriate
- Before the borrower writes an offer, encourage them to contact you to review the numbers for the specific property.
- Property taxes can vary dramatically.
- HOA dues can vary.
- Insurance can vary.
- Purchase price can vary.
- A borrower who is preapproved for one scenario might not qualify for every property at that price point.
Step 29: Update ARIVE Once the Borrower Has a Property
When the Borrower Has an Accepted Purchase Contract, Update the Loan File with the Actual:
- Property address
- Purchase price
- Loan amount
- Down payment
- Estimated taxes
- Insurance
- HOA information
- Contract dates
- Closing date
- Real estate contacts
Review the application again to ensure accuracy. Remember the TRID six-piece application rule and make sure your company’s disclosure process is followed once a covered application has been received. (Consumer Financial Protection Bureau)
Step 30: Reprice the Actual Property and Transaction
Return to LoanSifter and price the actual transaction. Do not count on pricing from three weeks ago—it can change in a heartbeat. Mortgage pricing is always on the move. Also, verify that the property and final transaction meet the lender’s eligibility requirements.
Review the borrower’s options and follow your company’s procedures for selecting the lender and locking the interest rate.
Never tell a borrower their rate is locked until you have gone through every step of your company’s official lock process.
Step 31: Submit the Loan for Processing and Underwriting
Once the borrower decides to proceed and the file is ready, submit it according to your company’s workflow.
A Well-Organized Submission Can Include:
- Completed application
- Credit report
- Income documentation
- Asset documentation
- Purchase contract
- AUS findings
- Explanations when required
- Supporting documents
- Proper lender submission information
Aim to submit a file that is as clean and complete as possible—your underwriter will thank you. Do not expect the underwriter to do the loan processor’s job for you.
Step 32: Work Through Underwriting Conditions
After underwriting, the file may be subject to conditions. Review every condition before sending it to the borrower.
Determine:
- What exactly is the underwriter asking for?
- Do you already have it?
- Can one document satisfy multiple conditions?
- Does the borrower understand the request?
Step 33: How to Clear Conditions on Conditional Loan Approval
Break down conditions into simple, easy-to-understand language. Rather than passing along confusing lender requests, clearly explain to the borrower exactly which document is needed and why.
Effective communication greatly influences the borrower’s perception of the mortgage process.
Provide Updates at Important Milestones Such as:
- Application completed
- Credit reviewed
- Preapproved
- Property under contract
- Loan submitted
- Initial underwriting completed
- Conditions submitted
- Appraisal received
- Clear to close
- Closing scheduled
Even when there is nothing big to report, borrowers value knowing you are keeping an eye on their loan. Once the loan receives final approval, confirm the next steps with the borrower.
Explain:
- Closing date
- Closing location or method
- Required identification
- Final funds needed
- How should final funds be handled?
- Closing Disclosure
- Any remaining lender instructions
Wire fraud is a significant risk in mortgage transactions. Borrowers should independently verify wiring instructions through approved channels before sending funds and should never rely on unexpected emails with changed instructions.
Step 35: Closing and Funding
The borrower signs the final mortgage documents. Depending on the transaction and applicable law, the loan will be funded in accordance with the closing process.
Your job is not done just because the borrower has signed—see the process through to full closing and funding. Ensure the closing and funding are fully complete.
Step 36: Follow Up After Closing
Contact the Borrower After Closing. Thank them for trusting you with their mortgage, and let them know you are always available for future questions.
A Satisfied Borrower Can Become:
- A repeat client
- A refinance client
- A referral source
- A future move-up buyer
- A real estate investment client
- One of your strongest sources of new business
Mortgage origination is about more than closing a loan—it is about building relationships that last long after the ink dries.
The Basic Mortgage Workflow Every New Loan Officer Should Remember
The Complete Process Can Be Summarized As:
Lead → Contact → Appointment → Qualification Interview → ARIVE Application → Credit → Income Analysis → Asset Analysis → DTI → Program Selection → AUS → LoanSifter Pricing → Documentation → Preapproval → Property → Disclosures → Lock → Submission → Underwriting → Conditions → Clear to Close → Closing → Follow-Up
If You are Just Starting Out in Mortgage Origination, Do Not Stress About Memorizing Every Underwriting Guideline Right Away.
- Put your energy into mastering the process first.
- Learn how to ask good questions.
- Learn how to read a mortgage application.
- Learn how to read a credit report.
- Learn how to calculate income.
- Learn how to calculate DTI.
- Learn how to navigate ARIVE.
- Learn how to search LoanSifter.
- Learn how to read DU and LPA findings.
- Above all, know when you do not have the answer—and do not be afraid to admit it.
- Never guess when it comes to mortgage guidelines.
Take the time to look up the guidelines, ask your manager, check your company’s resources, or confirm with the lender before giving an answer. Success in this role is not about fancy words—it is about handling challenges, solving problems, communicating clearly, and guiding borrowers from start to finish.
The next training will feature a hands-on ARIVE tutorial. It will cover the steps a new MLO takes after the borrower agrees to proceed, including creating the lead or file, sending the POS invitation, explaining each part of the 1003, pulling Advantage Credit, reviewing the credit report, running DU or LPA, and entering the scenario into LoanSifter. This will serve as Part 2 of this training series.
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This discussion was modified 3 minutes ago by
Gustan Cho.
support.arive.com
Overview ARIVE is a comprehensive, all in one mortgage ecosystem designed specifically for the wholesale channel. It combines essential tools into a single platform, allowing mortgage professionals to handle everything from initial borrower cont...
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