5 Tips for Streamlining Your Non-QM Mortgage Application Process

Non-qualified mortgage (non-QM) loans have become increasingly popular in recent years, as they provide financing options for borrowers who may not qualify for traditional mortgages. However, the non-QM mortgage application process can be more complex and time-consuming than that of a conventional mortgage. As a mortgage broker or loan officer, it’s essential to streamline your non-QM mortgage application process to provide your clients with a smooth and efficient experience. In this blog post, we’ll provide five tips for streamlining your non-QM mortgage application process. By implementing these tips, you can save time, reduce paperwork, and improve customer satisfaction. Whether you’re a seasoned mortgage professional or just starting in the industry, these tips can help you optimize your operations and grow your business.

Tip 1: Create a Checklist of Necessary Documents

One of the keys to streamlining the non-QM mortgage application process is having a clear and comprehensive checklist of necessary documents. Many non-QM loans require more documentation than traditional mortgages, so it’s crucial to make sure your clients understand what they need to provide upfront. Consider creating a checklist that outlines all the documents required for a non-QM mortgage application, such as: 1. Personal Identification Documents: – A copy of a government-issued ID, such as a driver’s license or passport – Social Security Card – Green Card (if not a US Citizen) 2. Income and Employment Documents: – Pay stubs for the most recent 30-day period – W2’s for the last two years – Most recent two years of personal tax returns – If self-employed or independent contractor, most recent two years of business tax returns, Year-to-Date profit and loss statement, and balance sheet – Two years of employment history including employers’ name, address, and phone number 3. Assets and Liabilities Documents: – Two most recent monthly bank statements for all checking, savings, and investment accounts – Retirement account statements (if applicable) – List of all debts and liabilities, including credit card debts, student loans, car loans, and personal loans – Mortgage statement (if applicable) 4. Property Information: – Sales contract – Property appraisal (if applicable) – Homeowner’s insurance policy By having a checklist, you can ensure that your clients provide all the necessary documentation upfront, reducing the need for follow-up requests and delays. Additionally, providing your clients with a clear list of requirements can improve their understanding of the process and reduce their anxiety about the loan application process. You can provide the checklist to your clients either as a hard copy or an electronic version that they can access online. Providing a digital version of the checklist can be beneficial as it allows the client to mark which documents they have already provided and which ones are outstanding. You can also encourage clients to upload these documents through a secure client portal, reducing the risk of sending sensitive information through unsecured email. By using a checklist, you can streamline your non-QM mortgage application process and provide your clients with a smoother and more efficient experience.

Tip 2: Use Electronic Signatures to Speed up Paperwork

The traditional mortgage application process can involve a lot of paperwork, which can be time-consuming and inconvenient for both the borrower and the mortgage broker. Fortunately, electronic signature solutions are now available that can streamline the process and speed up the time it takes to complete necessary paperwork. Electronic signatures are a secure and efficient way to sign documents digitally, eliminating the need for printing, signing, and scanning. They provide a faster and more convenient way for clients to sign documents from any device and any location, making the mortgage application process more accessible and more comfortable for them. Additionally, electronic signatures can help reduce errors in the application process. Documents signed electronically are less prone to errors because they can be easily verified and tracked, ensuring that all signatures are complete and accurate. This can save valuable time and resources by eliminating the need for back-and-forth communication and follow-up on incomplete or inaccurate documents. There are several electronic signature solutions available in the market, such as DocuSign, HelloSign, and Adobe Sign. These solutions offer a secure and reliable way to sign documents electronically, comply with legal requirements for electronic signatures, and provide real-time tracking of signature progress. They can also integrate with other software solutions, such as loan origination software and document management systems, to provide a complete end-to-end solution for the mortgage application process.

Tip 3: Implement Software to Automate Parts of the Process

Another way to streamline the non-QM mortgage application process is by implementing software to automate parts of the process. Automation can reduce manual errors, improve efficiency, and save time by streamlining repetitive tasks. Loan origination software, document management software, and workflow automation tools are some of the solutions that can be used to automate parts of the non-QM mortgage application process. Loan origination software can help streamline the loan application process by automating tasks such as credit checks, underwriting, and document management. With the help of such software, you can quickly and accurately process applications, evaluate borrower creditworthiness, and generate loan approvals or rejections. It can also help in organizing all necessary documents in one place, making it easier for you to keep track of the process and keep borrowers updated on their loan application status. Document management software can help in streamlining the document collection process by enabling the borrower to upload necessary documents into a secure portal. This eliminates the need for email attachments, making the process more secure and efficient. Document management software can also automate the organization and indexing of documents, reducing manual effort. Workflow automation tools can help in automating the loan origination process, from start to finish. These tools can manage workflows and streamline repetitive tasks such as sending reminders, updating loan status, and managing communication with the borrowers. Sure, here’s the next section:

Tip 4: Communicate Clearly and Regularly with Clients

Clear and consistent communication is essential in the non-QM mortgage application process. Borrowers can become anxious during the application process, and frequent updates can help alleviate their concerns. As a mortgage broker or loan officer, it’s essential to communicate clearly and regularly with your clients to keep them informed about the status of their loan application. One effective way to communicate with clients is by using technology. Email and text messaging can be used to keep borrowers updated on the status of their application, provide reminders, and answer questions. Additionally, you can use loan origination software that provides real-time updates and allows borrowers to track their application status. Another way to improve communication is by setting clear expectations for the application process. You can provide a timeline for the application process and keep borrowers informed of any delays or changes to the timeline. Providing a timeline can help manage the borrower’s expectations and reduce their anxiety. It’s essential to be responsive to borrower inquiries and concerns. Respond to inquiries promptly, and provide a clear and helpful response. If you cannot provide a response immediately, let the borrower know when they can expect a response.

Tip 5: Be Available to Clients When They Need You

In addition to clear and consistent communication, it’s important to be available to clients when they need you. Borrowers may have questions or concerns at any point during the non-QM mortgage application process, and it’s essential to be responsive and available to address their needs. One way to be available to clients is by offering multiple channels of communication. Email, phone, and text messaging can be used to communicate with borrowers and provide updates. Providing a customer portal that borrowers can log into to check the status of their application and exchange messages with you can also be beneficial. Another way to be available to clients is by setting specific times each day to respond to inquiries. For example, you could set aside time in the morning and afternoon to respond to emails and phone calls. By providing specific times, borrowers know when they can expect a response, reducing their anxiety and improving their overall experience. Finally, it’s important to provide personalized attention to each client. Every borrower has unique needs, and it’s essential to listen to their concerns and address them as quickly and effectively as possible. By providing personalized attention, you can differentiate your business from competitors and build trust with your clients.


Streamlining the non-QM mortgage application process can help reduce manual effort, improve efficiency, and provide a better experience for borrowers. By implementing the five tips discussed in this blog post, you can optimize your operations and grow your business. Here’s a quick summary of the five tips:
  1. Create a checklist of necessary documents to help borrowers gather and submit required documents quickly and efficiently.
  2. Use electronic signatures to speed up the process and reduce errors in the application process.
  3. Implement software to automate parts of the non-QM mortgage application process, such as loan origination software, document management software, and workflow automation tools.
  4. Communicate clearly and regularly with clients to keep them informed and reduce anxiety.
  5. Be available to clients when they need you by offering multiple channels of communication and setting specific times to respond to inquiries.
By incorporating these tips into your operations, you can improve your efficiency, differentiate your business from competitors, and provide a better experience for borrowers. This, in turn, can lead to increased customer satisfaction, repeat business, and referrals.

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