What Non-Bank Lenders Need to Do to Get More Clients
Non-bank lenders or alternative lenders are financial institutions who have the right to provide lending services or engage in credit card operations. However, they are different from full-scale banks because they do not provide depositing services to its customers.
For many years, prospective homeowners have turned to traditional lenders to secure home loans. However, these banks are neither equipped nor suited to meet rising demand of the market. These days, many brokers recommend their clients to seek financial help from non-bank lenders. These lenders may not be a bank or a credit union, but they do have their own sources to extend credit.
The financial crisis pretty much shaped the mortgage landscape, making credit rules tighter. As bank loans became harder to secure, access to new kind of loans increased. It is only a matter of time when non-bank lenders will gain prominence in the market and their supremacy will be affirmed through their use of technology to reorganise the process.
Alternative lenders can leverage the changing environment and secure more clients by using the following tips:
Faster Loan Approval
Applying for loan through traditional lending institution is a painful and time consuming process. If studies are any indication, loan application can take anywhere from 48 to 72 hours to put together, that is two-three days gone in just assembling all the paperwork. However, the worst part is that all that effort has a possibility of being rejected by the bank.
For non-bank lenders to become preferred choice for borrowers, they can give their prospective customers quick turnaround time and efficiency that regular lenders lack. Leveraging technology to make the process simpler and quicker is something that the borrowers will readily accept. Rather than using pen and paper, giving them mobile and web interfaces to complete their application will reduce the turnaround time significantly and make the approval faster.
Lower Interest Rates
Following the financial crisis of 2007-2009, lending institutions have been wary of extending credit to everyone. Borrowers that are considered riskier asset class are either denied loans or offered on the condition of collateral that they can give to the banks for safekeeping.
Alternative lenders can make it easier for the borrowers to obtain bank loans without the hassle of paying exceptionally high interest rates. Since non-bank lenders have fewer offices or lower marketing costs, they can extend savings to their customers as low fees and better interest rates.
Offer Personalized Service
While borrowers often complain about their lenders’ non-responsiveness, non-bank lenders can pick up where they left off. Providing personalized service to the client throughout their loan application process will be welcomed by the borrowers. They are used to dealing with multiple people in a large bank, but giving them a single point of contact for the entire process will make the experience better and simpler.
For any lending institution, be it a bank or a non-bank, their success at frontend depends on the quality of processes at the backend. Expert Mortgage Assistance is that backend support that you can rely on. While you focus on your business development activities, we assure you that we have your back. Our team of experts offer quick turnaround times, 24×7 operations and seamless operations. Talk to us today if you are looking for a dependable outsource partner!