One of the most useful tools to help complete a file, is a good old-fashioned checklist. 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
One of the most useful tools to help complete a file, is a good old-fashioned checklist.
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 can either create different types of checklists for different types of files, or you can 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.
There will be overlapping requirements – every borrower will be required to present 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
While it’s a good idea to place a checklist noting all required documents into the hands of the borrowers, it’s also a good 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. You can also add 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 fairly standard to keep a ‘Closings Calendar’, for any files that have been instructed and have firm closing dates, but it’s not as common 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 is a great way to ensure that you get the paperwork needed to complete your file, and a great way to remind yourself and your team if it’s time to follow up with a lender or law office!
The maturity date of your mortgage is fast approaching. The maturity of your mortgage gives you an opportunity to review your financial situation and make some decisions based on your financial goals and current situation. If you discussed an exit strategy with your mortgage broker, you may be preparing to refinance
The maturity date of your mortgage is fast approaching. The maturity of your mortgage gives you an opportunity to review your financial situation and make some decisions based on your financial goals and current situation.
If you discussed an exit strategy with your mortgage broker, you may be preparing to refinance with a new lender at a lower rate. If it suits your needs to renew your current mortgage, here are a few things to keep in mind both before and during the process:
Here are some tips to prepare for your renewal.
1. Ensure your account is current: If your mortgage account has fallen behind, make arrangements to bring it back into good standing. Work with your lender to find a solution that suits everyone. Small changes, such as moving your monthly payment to a new day, can make a difference.
2. Keep your home insurance in good standing: If your insurer has changed since you originally obtained your mortgage, make sure you let your lender know!
3. Keep the home in a good state of repair with no deferred maintenance: Don’t put off those home maintenance projects, big or small. Touch up the paint. Mow the lawn. Make sure the roof, furnace, and electrical wiring are in good repair.
What to expect at renewal.
1. Renewal Options: Your renewal options will be sent to you in advance of the maturity date. Review the options you have been offered. You may wish to discuss your options with your bank or mortgage broker.
2. ‘Business-for-Self’ Income: If you are ‘business for self’ or have ownership in a business, you may be asked to provide confirmation that HST and Source Deductions are being remitted to Revenue Canada.
3. Second Mortgages: If you have a second mortgage you may be asked to provide a current first mortgage statement. Most lenders will either send these out annually, or provide a way for you to access the information on their website or via online banking.
4. Income Verification: You may be asked for updated income verification. Gather or print your two most recent pay stubs, just in case you need them.
5. Appraisals: You may be asked for a new home appraisal. Appraisals always make note of any instances of deferred maintenance that are noted during the inspection. This is why keeping on top of projects around your home is so important.
Following these tips can ensure your mortgage renewal goes as smoothly as possible.
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Crafting a mortgage file for submission is an art, but did you know that your submission notes can be one of the most important parts of your deal? Thorough broker notes can lead to speedier approvals and a smoother underwriting process. Here are the top 5 things you should always
Crafting a mortgage file for submission is an art, but did you know that your submission notes can be one of the most important parts of your deal?
Thorough broker notes can lead to speedier approvals and a smoother underwriting process.
Here are the top 5 things you should always be including in your submission notes:
1. Your Contact Details: Be consistent about putting your best contact telephone number and your business email address in your notes, especially if the submission agent is not the same agent who will be looking after the deal. This will allow underwriters to reach you quickly and easily if they have any questions while reviewing the file.
2. The Basics: Is the deal a purchase or a refinance? Is it a rush? Are your clients looking to pay out specific debts or do renovations? Will the property be owner occupied or rented? Providing a brief outline of the file in your notes can really help a deal take shape quickly for your underwriter.
3. Rates and Promotions: Are you looking for a special rate or a lender-specific program or promotion? Request it in your broker notes!
4. Potential Issues: Have you spotted something you think may cause a hiccup in your deal? Is it something that may need an explanation? Be sure to include the details in your notes. Broker notes provide an ideal forum to explain and mitigate any issues that may affect a deal.
5. Documentation: Do you have all your paperwork ready to submit? Sending required documentation up front is a best-practice strategy in any case, but if you give your underwriter a list of what you’re able to send, they’ll know to expect it, and it will be added to the file with little to no delay.
Thorough broker notes show the underwriter that you have a good grasp of both the deal and what your clients are looking for, and they can make the underwriting process quicker and more efficient for everyone!
Client Interviewing Tips Starting out as a new Mortgage Agent, there is a lot of new information to take in and new processes to get used to. Learning how to conduct a thorough client interview and take a proper application is key to hitting the ground running. Successful Mortgage Agents
Client Interviewing Tips
Starting out as a new Mortgage Agent, there is a lot of new information to take in and new processes to get used to. Learning how to conduct a thorough client interview and take a proper application is key to hitting the ground running. Successful Mortgage Agents provide full, detailed applications and clearly demonstrate that they know their client.
How do you do that effectively?
Ask ‘open-ended’ questions. Then listen, and take notes.
Here are 5 basic questions to ask your client to help you gather the information you need:
Question 1: “Tell me about your credit history.”
Your follow-up questions should cover:
Question 2: “Tell me about your income.”
Your follow-up questions should cover:
Question 3: “Tell me about your property.”
Depending on whether it’s a new purchase or refinance, your follow-up questions should cover:
Question 4: “Tell me about your future plans and goals.”
Your follow-up questions should cover:
Question 5: “Tell me what’s important to you about your mortgage.”
Your follow-up questions should cover whether their priorities include:
An effective Mortgage Agent will take the time to have a thorough conversation with their clients, personalize the experience by asking the right questions, and then listen. Once you have a complete picture of your client’s situation, you can readily place them with the lender with whom they have the best fit.
Register for Magenta’s back-end portal to access useful tools and forms today!
You’ve met with your client. You’ve done a thorough job of asking open-ended questions, probing for explanations, and understanding any unique challenges of their situation. You write up the deal, select your lender and press submit. And then you wait (and your client waits). Finally, your lender comes back to
You’ve met with your client. You’ve done a thorough job of asking open-ended questions, probing for explanations, and understanding any unique challenges of their situation. You write up the deal, select your lender and press submit.
And then you wait (and your client waits).
Finally, your lender comes back to you with questions and you’ve got to go back to your client for more information. Your client is starting to get impatient; they want the house and they’re anxious to get the process moving.
What’s more, you’ve got multiple deals on the go that are requiring that same back and forth. You’re busier than ever and things are not moving forward fast enough. It can feel like you’re spinning.
How many times have you been in this situation?
There’s a simple solution to minimize this back and forth on the deal submission process: call your lender BDM before you submit your deal.
By first discussing the file with your lender BDM, you will obtain key information and answers that create the most efficient path to a viable solution for your client. Each lender has a unique posture in the marketplace, with differing requirements for credit, documentation, property types, and lending areas.
Knowing the nuances in advance will reduce the back and forth, enhancing your service levels and positioning yourself as true expert in the mortgage space.
Here are key points you’ll want to discuss with your lender BDM:
1. Communicate the areas where you think there might be hiccups. Being transparent from the outset will allow you to share your ideas and understand what options are available, allowing you to take a consultative approach with your client.
2. Understand any potential gaps the lender might be concerned about. You will learn of any additional information or documents your client may need to provide. It will also prepare you to explain to the client why the additional documentation is required.
3. Outline your client’s goals and establish a clear understanding of the lending guidelines to ensure this deal is the best solution for your client (and not just the best you can do with that particular lender).
4. Ask for feedback and guidance on structuring the file. Lender BDMs are knowledgeable and willing to help. They also want the process to go as smoothly and efficiently as possible.
Adding a quick 5-minute phone call to your lender BDM to your sales process could save you exponentially more time! Your efficiency and knowledge will create a strong working relationship with your clients and lead to referrals. Now, take all that time you’re saving and drum up new business for your pipeline!
In the process of interviewing a client, you’ve discovered some challenges with their application. You recognize that something about the application either doesn’t add up or requires further questions and investigation. But what does that look like? It’s not uncommon for mortgage brokers to struggle with asking the hard questions.
In the process of interviewing a client, you’ve discovered some challenges with their application. You recognize that something about the application either doesn’t add up or requires further questions and investigation. But what does that look like?
It’s not uncommon for mortgage brokers to struggle with asking the hard questions. Even experienced agents have told me that they feel uncomfortable asking hard questions and delving deep into their clients’ background and personal history. They recognize the need to get more detail but also feel their questions are intrusive or confrontational. They don’t want to offend their client or put them on the spot by asking tough questions that could make them defensive. The reality is that this is the exact information you need to get the best possible deal for your borrower.
As a mortgage professional you should explain that your job requires that you understand the root cause of their challenges, you are completely non-judgmental about their circumstances, and that their information will be held in confidence. Explain that this is how you will ultimately get them the best mortgage suited for their situation and future goals.
What are some typical ‘hard questions’ that you may have to ask your borrower?
Here are questions that can help you position your client to the correct lender the first time:
Once you’ve asked the tough questions, ensure that you document the explanation and then don’t be afraid to ask for verification from the borrower. You should anticipate that the underwriter will ask for this, so be up front in disclosing it, explaining it and verifying it.