A good old-fashioned checklist is one of the most useful tools to help complete a file.
Checklists are easy to create, easy to use, can be implemented at any stage of a file, and are one of the simplest ways to make sure you get to ‘File Complete’ with the fewest hiccups.
Checklists for Borrowers
Introducing a checklist system can happen right from the initial interview with the borrowers, and before the file has been submitted. After taking an application, you will have an idea of which documents will be required right away. You could create different types of checklists for different types of files. You might also create one checklist and simply highlight the things you need from your clients on each different file.
For example, you may have one checklist for traditional income, and one checklist for Business for Self (BFS) files. You might also have one checklist for purchase files, and one checklist for refinance files.
You can expect overlapping requirements – every borrower will be required to present a valid photo ID, for instance. For the most part, however, you can customize a system that works best for you and for your clientele.
Checklists for Brokers
It’s a good idea to place a checklist noting all required documents into the hands of the borrowers. It’s an even better idea to keep a copy of that same checklist for yourself!
The necessary items may arrive in one big package, or the borrowers may bring things in as they find them, etc. If you have a copy of the checklist, you can tick items off as they come in. Consider adding a column to keep track of whether you’ve sent the documents to the lender, and whether they’ve been approved.
Depending on your file load at any given time, you may want to have a system to keep track of which stage your files are sitting.
It’s standard to keep a ‘Closings Calendar’, for files that have been instructed and have firm closing dates. What’s less common is to keep a checklist in each file to let you know at a glance at which stage a file is in the process. You can have a checklist that has columns like: ‘Pre-Submission’; ‘Submitted’; ‘Approved’; ‘Declined’; ‘Complete’; ‘Instructed’; ‘Closed’.
Utilizing a checklist system helps ensure that you get the paperwork needed to complete your file. It’s also a good reminder that it’s time to follow up with a lender or law office!
About Magenta Capital Corporation
Magenta is one of Canada’s leading residential, private MICs. Since 1994, we’ve specialized in flexible mortgage solutions for Ontarians who fall just outside of bank lending criteria, while delivering on strong, consistent returns for shareholders across Canada. Our goal is to empower our customers, partners and employees to build a better tomorrow.
For more information, visit us at www.magentacapital.ca or contact our broker representatives at brokers@magentacapital.ca