CRM: Loan Status Milestones Explained

The following loan status milestones are used by the Mortgage Mark Team for tracking leads. Whether using a CRM like Salesforce or a simple Lead Tracker Excel spreadsheet, these milestones have been refined over the past 15 years to create an efficient and organized system. The milestones are coded alphabetically to allow for easy sorting and tracking, with chronological steps that follow a lead’s lifecycle.

The Loan Status Milestones are:

  • (?) TBD
  • (A) Loan App: Sent
  • (B) Loan App: Received
  • (C) Pre-Qualified
  • (D) Pre-Approved
  • 01. Contract/Go
  • 02. DISC Ordered
  • 03. DISC Sent
  • 04. DISC Received
  • 05. Setup / R4O
  • 06. Processing
  • 07. UW Submitted
  • 08. UW Approved
  • 09. CTC Submitted
  • 10. Instructions Out
  • 11. Closed
  • 12. Funded
  • z- Can’t
  • z- Didn’t
  • z- Lead
  • z- Lost (cash/relo/builder)
  • z- Lost (rate/unknown)
  • z- Lost (rel/mid proc/we better)
  • z- Lost (special prog)
  • zz- Junk

Loan Status Categories:

  • (?) TBD: When a lead first enters the system, it automatically gets the “TBD” designation because we don’t know much about the potential borrower at this stage. It is “To Be Determined” what happens next based on our conversations with the borrower.
  • (A) Loan App: Sent: When the borrower decides to move forward, the loan application is sent.
  • (B) Loan App: Received: Once the loan application is received, the status is updated. If additional documents or information are needed, it will remain in this category until everything is gathered.
  • (C) Pre-Qualified: The borrower is pre-qualified based on the initial review of the loan application.
  • (D) Pre-Approved: After all necessary documents are collected and reviewed, the borrower is pre-approved, pending final underwriting.

Loan Milestones After Pre-Approval:

    1. Contract/Go: Once the borrower has a purchase contract or indicates they’re ready to proceed with a refinance, the status changes to “Contract/Go.” This milestone starts the clock for further actions.
    1. DISC Ordered: Disclosures are ordered for the loan process.
    1. DISC Sent: Disclosures are sent out to the borrower.
    1. DISC Received: Disclosures are received back from the borrower.
    1. Setup / R4O: The file is set up for processing, and all supporting documents are gathered.
    1. Processing: The file enters the processing stage, where all details are verified before submission to underwriting.
    1. UW Submitted: The loan is submitted to underwriting for approval.
    1. UW Approved: The loan is approved by underwriting. Even if there are conditions (i.e., requests for additional documentation), it still counts as “UW Approved.”
    1. CTC Submitted: Once all conditions are cleared, the file is submitted for “Clear to Close.”
    1. Instructions Out: Closing instructions are sent out.
    1. Closed: The loan has closed.
    1. Funded: After closing, the loan is funded. For purchases, this happens the same day, while for refinances (especially on homesteads), it may take three days after closing to fund.

Z-Status Categories:

  • z- Can’t: The borrower couldn’t qualify for the loan due to credit, income, or other issues.
  • z- Didn’t: The borrower didn’t follow through on a refinance or purchase, despite having the opportunity.
  • z- Lead: We didn’t get a real opportunity with this borrower. They never gave us a full chance to win their business, either by ghosting or choosing another lender before serious discussions took place.
  • z- Lost (cash/relo/builder): The lead was lost to an unfair competition such as cash buyers, relocation packages, or builder incentives.
  • z- Lost (rate/unknown): We lost the lead, but the reason is unclear—possibly due to rate, service, or other unknown factors. This is the most common and often the most painful category.
  • z- Lost (rel/mid proc/we better): Lost due to an existing relationship with another lender or because they were mid-process with someone else, despite our being the better option.
  • z- Lost (special prog): Lost due to a special program that another lender offered, such as a unique doctor program or 100% financing.
  • zz- Junk: Used for duplicate leads or files that should no longer be tracked. This designation helps keep the CRM or spreadsheet clean without deleting records.

Excluded Milestones: Rate Lock and Appraisal Ordered

Two specific milestones were not included in the primary loan tracking process: the Rate Lock and the Appraisal Ordered milestones. While these actions are vital to the overall process, they are intentionally not part of the milestone tracking system for the following reasons:

  • Rate Lock:
    The loan rate can be locked at various points throughout the process. It could be locked on the first day, midway through underwriting, or at other stages depending on the borrower’s preference or market conditions. Since locking a rate doesn’t provide a clear indication of the loan’s progress, it is tracked separately from the main milestones. The focus of these milestones is on the status of the loan in the pipeline, rather than the timing of a rate lock.
  • Appraisal Ordered:
    Similar to the rate lock, the ordering of the appraisal does not necessarily reflect the exact stage of the loan’s process. An appraisal can be ordered early on, or later in the underwriting process, depending on the circumstances. Tracking the appraisal order separately allows flexibility, as its timing can vary without impacting the milestone tracking of the loan’s status.

These milestones help the Mortgage Mark Team manage and track the life cycle of loan applications, ensuring transparency and efficiency in the loan process. Whether using a simple spreadsheet or a more sophisticated CRM system, these categories are invaluable for staying organized and ensuring nothing falls through the cracks.

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