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Loan Origination Software (LOS) and Point-of-Sale (POS) System Explained

Due to the very rapid rate of digitalization happening around the world, financial technology has become a key to success. When it comes to lending, for example, lenders are forced to quickly adopt and implement advanced technology that enables loan automation in order to stay competitive.

Loan origination software (LOS) and point-of-sale (POS) systems, in particular, have been a huge leap in credit systems globally. Thanks to such technologies, quick financing has become a reality for many people across the globe. 

In this article, we will explore the features of POS lending and mortgage POS, specifically, and explore what LOS solutions entail. Let’s get started.

What Is a Point-of-Sale (POS) System?

POS systems aim to facilitate POS transactions, which refer to the place and time a retail transaction occurs. To be more specific, whenever a customer makes a purchase, either online or in-store, a point-of-sale transaction gets completed. 

A POS system is any hardware and/or software that allows businesses to receive and process such incoming payments. A known example is a cash register. No wonder many businesses rely on point-of-sale solutions on a regular basis to facilitate POS transactions.

Mortgage POS

Talking about POS, we should note the importance of mortgage POS solutions. With the help of a mortgage point-of-sale (POS) system, businesses can directly interact with clients. For example, they can supply them with the information they require to digitally fill out mortgage loan applications. With mortgage POS, customers can digitally apply for mortgage loans, provide all required documents, and confirm the status of their application. 

So, how exactly does this work? As stated above, a potential borrower can simply initiate communication, upload documentation, and track the status of their loan by using a mortgage POS solution through a secure web-based interface. Below are some features integrated into a mortgage POS system that can speed up the entire pre-qualification process:

1. Data verification services from numerous sources.

2. The ability to divulge information at the point of sale using eSign technology.

3. Links to automated underwriting systems, as well as information from pricing engines.

Loan Origination Software (LOS)

To facilitate lending across sectors, loan origination (LOS) solutions also play a crucial role. So let’s address the concept of a loan-originating system and explore its connection with POS systems.

Simply put, loan origination software is a framework for managing and automating various steps of one of the first and most vital parts of a loan life cycle: loan origination. This includes loan application, document verification, and credit approval. 

LOS & POS Integration

Given the importance of point-of-sale (POS) systems, mortgage POS, and loan origination software (LOS), there is one thing many businesses ask. Can one integrate LOS software with a mortgage POS system, and what are the benefits of such integration?

Yes! Loan origination and servicing costs can be greatly reduced with the help of a LOS system that supports robust back-end functionality and provides an intuitive point-of-sale (POS) system for the front end. Put simply, the loan origination software exists on the back end, while the consumers/borrowers get to apply for their mortgage loans on the front end.

This integration provides home-buyers, for example, with a more open, technologically-enabled, and straightforward experience. Seeking and obtaining mortgage financing, therefore, becomes entirely stress-free. 

For businesses, on the other hand, choosing a LOS that comes pre-configured with a POS immediately makes your business more scalable. It also allows for tighter integration and a fulfilling consumer experience. Therefore, as a mortgage broker or another type of lender, it is always advisable to streamline your loan processes to be more productive.

One definite way to achieve this is by working with a trusted and reliable fintech partner that can help you scale from Day One.

Benefits for Businesses

Clearly, a LOS POS integration is a win for POS lenders as well as borrowers. 

  • Seamless User Experience

Consumers have grown to expect a seamless digital user experience, whether it’s for refinancing or first-time home purchases. As a result of the rise of digital mortgages, face-to-face meetings and stacks of paper are no longer necessary for the loan application process. Customers can enter data, submit documents, and provide digital signatures without ever setting foot in your office. The client provides real-time data, which eliminates the need for manual data entry on the back end, allowing for simpler management of all loan origination processes.

  • Time Management and Efficiency

Integrating your POS and LOS software solutions will not only provide customers with a better overall experience, but it will also make your business more productive. Otherwise, you will most likely spend time manually entering or checking data. It is also more likely that mistakes will occur. Naturally, all of this slows down the loan application procedure.

  • Scalability and Growth

Your business will also expand more quickly, thanks to the LOS POS integration that will help you initiate and close more mortgages. Expanding your mortgage broker company is challenging, and your ultimate goal should be to acquire as many paying customers as possible. In addition, by integrating your POS and LOS systems and improving a positive user experience for your customers, they will be more inclined to recommend your business. This is also undoubtedly a win for your business.

In the end, from the moment a borrower applies for a loan to when the loan is repaid, the entire process can be automated thanks to advanced point-of-sale and loan origination software and advanced technology, such as the one provided by Tarya Fintech.

We help you scale your business, so join us on a journey toward revolutionizing the financial world today!

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