“Mortgages made easy” is a common buzz/marketing term that agents and brokers leverage when marketing to consumers to explain why using a broker/agent to get a mortgage makes the process easy. We could say the same to you on the underwriting side. Leveraging the latest tools and technology results in mortgages made easy!
Here are some mortgages made easy underwriting tips from the Purview team at Teranet! Whether you are a broker who simply brokers to larger institutional lenders, you represent more private lenders or you lend your own money, you can benefit from these tips. The very nucleus of solid mortgage underwriting boils down to verifying the information provided by the client – information that we group into 3 categories.
- Know the client – Knowing the client means checking identification, matching it against other documents, reviewing the credit report, as well as checking to ensure that the client (in the case of a refinance) is the legal homeowner of their property. So often clients forget that other people are on title, not to get one over on you but because they simply did not remember. In the case of divorcing spouses, sometimes a transfer of title has happened without the existing first mortgagor’s knowledge. Is the lawyer supposed to notify any mortgage lenders when adding/removing from title? Absolutely. Does it happen all the time? No. Sometimes a fax with notification is sent but an administrative issue sees it end up not where it needs to be, and so without a response, notification is enough and the transfer takes place. Independently verifying who is on title and knowing your client are two critical components of the mortgage underwriting process.
- Know the property – Another key aspect of the independent verification process is knowing the property. When surprises come up once a deal has been sent to a lender, it can strain relationships and damage your credibility – especially when it happens all the time. When we say know the property we mean know the sales and financial history. This can not only identify potential fraud but can identify issues with the property type, value and equity.
- Know the area – Finally, and this is especially key when arranging private mortgages and lending your own money, you need to know the area. Receiving deals from all over makes it impossible for you to know each and every area, but again you can leverage technology to learn very quickly about an area – both what is located around the property being financed and also the sales histories of other properties in the area.
Leveraging our Purview For Mortgage Brokers – Mortgages Made Easy, Underwriting in 1-2-3 is one way to take advantage of all the tips above using one easy tool.
For more information, please contact us today at 1.855.787.8439.