Why Timing Matters: The Case for Early Transcript Retrieval in Lending
In lending, every detail matters, and time is of the essence.
One critical component that frequently gets overlooked when it comes to saving both time and money is the borrower’s tax transcript.
While required for all SBA loans, the timing of the request for tax transcripts varies widely. Some lenders wait until late in the underwriting process, while others secure it upfront.
This difference in approach can have significant consequences for efficiency, cost, borrower experience, and even whether or not the deal comes together.
One critical component that frequently gets overlooked when it comes to saving both time and money is the borrower’s tax transcript.
While required for all SBA loans, the timing of the request for tax transcripts varies widely. Some lenders wait until late in the underwriting process, while others secure it upfront.
This difference in approach can have significant consequences for efficiency, cost, borrower experience, and even whether or not the deal comes together.
Late Transcript Requests
Many lenders delay requesting tax transcripts until they are deep into underwriting. The logic seems sound: why incur the cost early if the deal might not progress?
While economical, this approach can backfire.
When transcripts are requested late, this means any potential tax liabilities are revealed late, and the deal cannot be closed until these liabilities are solved. If the borrower cannot resolve the liability, the deal falls through completely.
This last-minute scramble can lead to rushed decisions and strained client relationships.
Staff may find themselves working overtime to meet deadlines, leaving borrowers frustrated and anxious.
Having spent precious time and money on underwriting a loan, a liability being found in the tax transcript after the fact brings the deal back to square one.
This is where a deal can easily fall through, as the required documentation cannot be obtained quickly enough.
While economical, this approach can backfire.
When transcripts are requested late, this means any potential tax liabilities are revealed late, and the deal cannot be closed until these liabilities are solved. If the borrower cannot resolve the liability, the deal falls through completely.
This last-minute scramble can lead to rushed decisions and strained client relationships.
Staff may find themselves working overtime to meet deadlines, leaving borrowers frustrated and anxious.
Having spent precious time and money on underwriting a loan, a liability being found in the tax transcript after the fact brings the deal back to square one.
This is where a deal can easily fall through, as the required documentation cannot be obtained quickly enough.
Early Transcript Access
Accessing transcripts early in the process can make a huge difference.
By securing this data upfront, lenders can better qualify borrowers from the start. This proactive approach reduces surprises later in underwriting, minimizes rework, and builds confidence in the deal’s viability.
Instead of discovering income discrepancies or tax issues at the eleventh hour, lenders can address them early, saving time and preserving trust.
Early transcript access also improves risk management.
When lenders have a complete financial picture from day one, they can make more accurate lending decisions. This reduces exposure to problematic loans and enhances portfolio quality over time.
By securing this data upfront, lenders can better qualify borrowers from the start. This proactive approach reduces surprises later in underwriting, minimizes rework, and builds confidence in the deal’s viability.
Instead of discovering income discrepancies or tax issues at the eleventh hour, lenders can address them early, saving time and preserving trust.
Early transcript access also improves risk management.
When lenders have a complete financial picture from day one, they can make more accurate lending decisions. This reduces exposure to problematic loans and enhances portfolio quality over time.
Operational Benefits with TOD
Beyond a smoother process, early transcript retrieval with TOD opens the door to additional advantages:
TOD E-Sign Capability: When transcripts are secured early with TOD, lenders can leverage TOD’s e-signature technology, helping to streamline document execution and improve borrower convenience.
Lower Fees: Accessing transcripts with TOD also means saving money– for you as a lender or passed along as savings to the borrower. This competitive edge can enhance client satisfaction and profitability.
Better Resource Allocation: Teams can plan workloads more effectively when they aren’t constantly reacting to last-minute emergencies. This improves morale and reduces burnout.
TOD E-Sign Capability: When transcripts are secured early with TOD, lenders can leverage TOD’s e-signature technology, helping to streamline document execution and improve borrower convenience.
Lower Fees: Accessing transcripts with TOD also means saving money– for you as a lender or passed along as savings to the borrower. This competitive edge can enhance client satisfaction and profitability.
Better Resource Allocation: Teams can plan workloads more effectively when they aren’t constantly reacting to last-minute emergencies. This improves morale and reduces burnout.
Requesting transcripts earlier in your lending process will save you both time and money.
By shifting transcript retrieval to the earliest possible stage and utilizing TOD’s ongoing monitoring, lenders gain better borrower insights, eliminate unnecessary urgency, and unlock operational efficiencies that benefit everyone involved.
Now is the time to rethink your approach.
From our experience working with the #1 SBA lender by loan count for the last several years, TOD can help you evaluate your workflow, identify opportunities to move transcript retrieval earlier, and explore tools that make this process seamless.
If you’re interested in learning more about how TOD can change your operations for the better, contact our partnerships team today.
By shifting transcript retrieval to the earliest possible stage and utilizing TOD’s ongoing monitoring, lenders gain better borrower insights, eliminate unnecessary urgency, and unlock operational efficiencies that benefit everyone involved.
Now is the time to rethink your approach.
From our experience working with the #1 SBA lender by loan count for the last several years, TOD can help you evaluate your workflow, identify opportunities to move transcript retrieval earlier, and explore tools that make this process seamless.
If you’re interested in learning more about how TOD can change your operations for the better, contact our partnerships team today.
Interested in exploring how TOD could change your lending process?
Contact our partnership team today to learn more!