• Gavin Gleeson

4 Key Phases For Effective Application Workflows


Still asking for all documentation upfront? A lot of lenders are, simply due to the fact that document and communication management across dozens of clients is challenging. Requiring all information to be provided at the same time can cause applicants to freeze and delay thier application efforts when they may actually have enough on hand for an eligibility review.


In reality, a multi-phase application process can actually lead to quicker decisions. Don't let document and process management challenges create unnecessary roadblocks that delay applications from new clients.


4 Key Phases For Effective Application Workflows


We see lenders breaking their application workflow into 4 distinct phases from eligibility to confirmation of funds received.


Let’s look at each phase in more detail.

1. Eligibility Phase - Does it make sense to proceed?

  • Asking for information upfront makes it easier to get started

  • Discover deal breakers at the beginning of the process

  • Make sure clients are applying for the right loan

  • Maybe they could benefit from some TA before going further


2. Additional Documentation - Avoid over-collection by asking for more sensitive information after the eligibility phase.

  • Collect the bulk of the loan package contents

  • Ensure loan packages are complete prior to final underwriting

  • Review information on hand while applicants work on providing additional detail

  • Provide guidance around individual items



3. Final Review - Item specific Lender/Client conversations are visible to underwriters.

  • Underwriting team reviews documentation

  • Requests for additional information directly from applicants

  • Digital confirmation of approval sent to the client

  • Approved loans projects are assigned for document prep


4. Disbursement of Funds - Collect pre-closing information and confirm receipt of funds.

  • Collect bank account information and ACH forms

  • Client confirmation of receipt of Funds

  • Establish a post-approval structure for quarterly financial updates


The only thing holding most lenders back from a multi-phase application process is a software platform that organizes both documents and two-way communication on a granular level for every client. This multi-phase approach is a core feature within Lenderfit.


If you’d like to learn more about multi-phase application processes, we’d love to connect!



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