Loan Pipeline: What Are They and What Purpose Do They Serve? -
Abstract
A mortgage loan pipeline is a set of loans that have been initiated but not completed. In some cases, the loans have been offered to potential homebuyers. Lenders love this setup because it means they don’t have to worry about running low on money to lend. The state of the market can determine whether a lender creates further loans, seeking to balance profits and losses as interest rates fluctuate. Without a pipeline, there’s just more money available. The loan pipeline can make certain loan terms. The pipeline can also increase the number of loan types available. When lenders are able to offer more loans, borrowers will have greater access to various loan types. For example, lenders can offer standard mortgages alongside other loan programs, such as options for refinancing. How to Build Your Loan Pipeline Building a loan Pipeline can increase your bandwidth and enhance the services you offer your clients.