When a borrower comes to your institution seeking funds, most often aren’t arriving with a specific type of loan in mind. They have a need and look to their lender for guidance about the best way to address it. Personal loans are often the go-to option for lenders. They are often the fastest, easiest way to get a borrower access to funds. But, technology is changing the ease of home equity lending, and we think it deserves a more frequent look.
Home Equity Loans are Becoming Faster and Simpler
In a pros and cons comparison of personal loans vs. home equity loans, the “cons” of home equity loans include a (much) longer process with more hoops to jump through. It’s a fair critique. Many institutions average four weeks or even longer to close.In that light, the personal loan might seem the obvious choice. But what if the borrower doesn’t have stellar credit? What if they need a large amount of cash to fund a longer project that could require multiple draws? What if an automated lending workflow could intelligently execute the home equity loan process for you? What if you could be cleared to close on a HELOC in as little as three days? That certainly changes things, doesn’t it? Lenders that digitize and automate their back-end processes can radically change the traditional expectations around home equity lending. With a simple click that launches an advanced automated workflow, lenders can slash timelines like they never thought possible. And, it’s not just about doing everything faster. It’s about working much, much smarter. Using an automated workflow means that upon clicking “start,” the loan process is intelligently carried out utilizing an efficient set of best practices. You can do other, more productive things that don’t include duplicate data entry and checking on appraisal status. What about offering borrowers more financial guidance, or identifying other product offerings that fit their needs?
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