Understanding how Lendersa works for borrowers is critical to your success. Thousands of lenders could potentially fund your loan, and we want to ensure that only the best lender with the best rate, terms, and loan conditions you fulfill quickly is elected to fund your loan. Conventional loans, FHA, Commercial loans, SBA, Vacant land loans, and Hard money loans are all being done with the help of Lendersa AI, and they all follow the same steps as it described in this guide.
Step 0. Lenders: Banks, credit unions, Internet lenders, mortgage brokers, and hard money lenders upload their rate sheets and loan matrixes, which contain details of the approval conditions, to the Lendersa® portal.
Step 1. -Borrower: The first step is to complete the Loan Request- The borrower enters basic information about the property, his financials, and his goal in taking the loan. There is no need to enter social security numbers, tax returns, or any other confidential information on the loan request.
As soon as the request is completed, you will be invited to your personal dashboard to monitor its progress.
Step 2. Conditional step: If your request doesn’t need any enhancement, this step is skipped, and you will be automatically at step #3.
This step is Loan Request Correction—Your loan request is like a resume for your loan, and as such, it should give the receiving lenders a positive first impression.
You may have the potential to receive an excellent loan, but if you do not enter all the relevant information and do not describe it correctly, you may be ignored by some of the better lenders. Lendersa® AI will review the request for quality and completion and advise you on your dashboard on any corrections that are needed to enhance your loan request. It is also possible to be contacted by the Lendersa® processing team by phone, email, or through the loan progress chatbox to help you present your request in the best of light.
Step 3. Lendersa®: Lendersa® AI transfers the loan request to the best-matched lenders. Your dashboard loan progress page will notify you when the request has been submitted for the matching lenders’ review.
Step 4. Lenders: Matching lenders' review of your loan request—This step is done manually; each lender receiving your request will review it and, if interested, contact you through the dashboard. Although each Lender receiving the loan request must have a matching matrix, they are not always responsive or slow to review and respond. You will be dealing with lenders who react fast, but receiving inquiries and loan offers from belated lenders’ replies is possible.
Step 5. Interaction with lenders to get Loan offers: At this step, you will be asked to answer questions from the lenders via the chatbox, upload documents, complete loan applications, and talk directly with the lenders by phone. In this step, you aim to get loan offers.
Loan offers can come in different forms: Loan Proposals, Soft Quotes, LOIs, or Term Sheets.
Definitions:
- **Soft Quote** AKA **Loan Proposal**: An informal, preliminary estimate from a lender based on basic information. It provides a general idea of potential loan terms, like interest rates and amounts, but isn't binding or detailed.
- **Letter of Intent (LOI)**: A more formal document expressing the intent to enter into a transaction. It outlines preliminary terms and conditions but remains non-binding. It demonstrates a serious interest in proceeding and typically includes more specific details than a soft quote.
- **Term Sheet**: A detailed document issued after a more thorough review and pre-approval. It outlines specific terms and conditions of the proposed loan, such as interest rates, fees, and repayment schedules. While still non-binding, it is more comprehensive than an LOI and serves as a basis for the final agreement.
Important Note: The terminology of all the above Loan offers is subjective, and their seriousness depends on the issuing lender. For example, an LOI issued by a major bank is much stronger than an LOI provided by a local mortgage broker.
Step 6. Compare and Select: The Lendersa® comparison tool enables you to compare Soft Quotes, LOIs, and Term sheets on your dashboard to decide which lender or lenders. You compare not just the rates, fees, and terms but also the qualification requirements that are attached to the loan offers. A Loan offer with the lowest rate may require you to change the title or encumber an additional property and, therefore, may not be acceptable. Compare Dive in and choose the lender that shows the most potential to move forward with in step 7! Exciting possibilities await!
Step 7. Final Run: Now that you have selected a lender, you will work directly with him. To finalize the loan
Appraisal: An appraisal of the property is conducted to assess its current market value. (Few Lenders can close loans without a fill blown appraisal)
Underwriting: The lender evaluates all documentation and information to finalize loan approval.
Escrow: The lender will open escrow, if not already open, to gather title reports, demands, and other documents related to title and legal issues
Loan Commitment If underwriting is successful, the lender issues a formal loan commitment outlining the final terms and conditions. When the loan terms are the same as those delineated on the term sheet, the lender will produce the loan documents.
Loan Documents: Sign-up for the loan documents is coordinated with escrow.
Step 8. Alternative option: Circumstances could arise in Step 7 that make the lender change or cancel the loan offer. If that happens, you go back to Step 6 to select the now best contender and proceed with that lender with Step 7. The replacement lender may accept the Appraisal that was already done, which can save time.
Step 9. Closing: The final step where all documents are signed, closing costs are paid, and the loan is funded.
Step 10. After successful closing: Closing your loan but keeping your dashboard for future loans and unlimited usage of our AI tools. Lendersa doors are open for your collaboration as an affiliate and partnering with us to spread your success while earning the highest affiliate fee among all affiliate programs!
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