Applying for a mortgage is a major financial decision; most people shop for the best rates before applying. If you want business to flow into your operation, you must offer fast, competitive pricing.
You need a mortgage pricing engine.
A mortgage pricing engine lets your team compare rates and identify the most attractive deals. It's an essential part of an effective pricing strategy. But why stop there?
Many lenders now have a mortgage pricing engine rolled into their loan origination system (LOS). The integrated approach keeps your rates current and automates many pricing tasks.
What is a LOS and a Pricing Engine?
In the mortgage industry, a loan origination system (LOS) is software used to facilitate the loan process. It helps lenders manage key processes like customer onboarding, document collection, and loan approval.
A mortgage product pricing engine (PPE) is a crucial accessory that provides access to the latest rate information and generates accurate quotes. An effective pricing engine keeps borrowers in your pipeline.
Combining LOS and Pricing Engine Platform Benefits
When you combine a pricing engine with your LOS, you benefit from two efficient systems working in tandem. Here are a few specific advantages:
Improve Your Customer Experience
Integrating a pricing engine with your LOS amplifies the customer experience. Swift and accurate proposals can be delivered within seconds, setting the stage for a painless borrower experience.
A rate lock feature and instant pre-approval add convenience, while loan selection is made easier with real-time fee calculators and a fully digital checkout. All of these features get built into the integrated system.
Reduce Time to Close
Efficiency becomes the guiding principle as automation and streamlined workflows accelerate the loan process.
And, because automation eliminates tedious tasks like rate shopping, you have more time for conversations with borrowers. Faster closings translate into borrowers reaching their homeownership goals with more speed.
Save Money
Embracing an integrated platform eliminates the need to pay different vendors. No more fragmented subscriptions; instead, you can utilize a singular solution with more cost-effective pricing.
You'll also save money through greater accuracy. With an integrated system, there's no need to copy data across platforms.
Keep Everything in One Place
Having everything digitally saved in one place means that information is instantly accessible when needed. The scavenger hunt for paper documents is over.
Of course, a singular loan origination software pricing engine's advantages vary. You'll save valuable time and resources, enhance sustainability by reducing paper usage, and gain a centralized data repository.
How To Choose the Right Pricing Engine + LOS Combination
The key to success lies in selecting the right pricing engine and LOS integration. Settling on a vendor that doesn't offer a full range of features robs your team of some of the best benefits of the combination. Here are a few essential factors lenders shouldn't ignore:
1. Scalability
Pick a solution with scalability options, such as adding users as you grow. Whether handling a modest loan volume or gearing up for a surge, your pricing engine and LOS duo should adapt effortlessly.
2. Accuracy
Accuracy matters when it comes to pricing. Make sure the engine you choose gets updated with the latest rate information.
3. Ease of Use
The system should be user-friendly, with an intuitive interface that requires minimal training. It should also have automated features to save time on manual tasks such as document verification. An overly complex platform will confuse your team and disrupt workflows.
4. Compliance
Opt for a LOS and pricing engine combination that aligns with industry standards and safeguards against compliance pitfalls.
Checklist
Before signing on the dotted line, use this checklist as a guide:
- Does the platform offer scalability?
- Is there an API in place to easily add new features and customizations?
- Is the platform updated regularly with current rate information?
- How user-friendly is the interface?
- Are automated features built-in for convenience?
- Is it compliant with necessary industry regulations?
- Can the combined system interact with other tools or third-party services?
- What existing customer success stories and references can the vendor provide?
Taking your time with the checklist is worth the effort. One loan originator completed $145 million in loan transactions within a year after combining his LOS and mortgage pricing engine.
All Your Origination Needs in One System
Sonar is a unified mortgage platform with a LOS and mortgage pricing engine designed for lenders of all sizes. Sonar offers intuitive features that allow you to implement your style while highlighting automation. Sonar also includes CRM and POS capabilities, further deepening the all-in-one experience. The platform is easy to use and contains real-time rate locks to keep borrowers on your site.
Secure a brighter future for both your borrowers and your bottom line. Schedule a demo today to discover how Sonar is revolutionizing the origination process.
