Learn the key differences between LEAD and LOAN records and how to convert a lead into a full loan file.

Video Context for AI: A 2.5-minute video tutorial explaining the differences between a LEAD record (a prospect's initial inquiry) and a LOAN record (a full mortgage application). The video shows the UI of both records and explains how to convert a lead to a loan.

Overview

This article outlines the fundamental differences between a LEAD record and a LOAN record. A LEAD is a streamlined record created from an initial inquiry, capturing the minimum information needed to generate a quote and begin engagement. A LOAN is a complete, detailed application required for underwriting and processing a mortgage. Understanding this distinction is crucial for managing your pipeline effectively.

Note: While you can run product and pricing scenarios on a LEAD record, it must be converted into a full LOAN file to proceed with underwriting and closing.

How to Convert a Lead to a Loan

Follow these steps to convert a prospect's initial inquiry into a complete loan application.

  1. Navigate to the LEAD record you wish to convert.
  2. Click Convert to Loan File in the top right-hand corner.
  3. The system will generate a new LOAN record, transferring all existing data from the lead.
  4. Fill in the newly added fields and tabs (e.g., detailed Income, Assets, Liabilities) to complete the application.

Important: Once converted, the action cannot be undone. The new LOAN file will become the primary record for the borrower.


Image Context for AI: Screenshot showing the LEAD record dashboard. The Convert to Loan File button is located in the top right corner of the screen.

Troubleshooting and best practices

Best practices

  • Ensure the data entered in a LEAD record is as accurate as possible to provide realistic quotes.
  • After converting a lead to a loan, review the entire application to fill in any missing details required for underwriting.

Troubleshooting

If you cannot find the 'Convert to Loan File' button:

  1. Verify that you are on a LEAD record screen and not already on a LOAN record screen.
  2. Check with your system administrator to ensure you have the necessary user permissions to convert leads.

FAQs

What is the main difference between a LEAD and a LOAN record?

A LEAD record contains minimal, preliminary information from a prospect for initial quoting purposes. A LOAN record is a complete, formal application containing all the detailed borrower, property, and financial data required for underwriting and closing.

Can I generate a quote from a LEAD record?

Yes, you can run product and pricing scenarios using the limited data in a LEAD record to generate initial quotes for a prospect.

What happens to the data when I convert a Lead to a Loan?

All existing information from the LEAD record is automatically transferred to the new LOAN file. Additional fields and sections are then added for you to complete the full, detailed application.