Evaluating Your Portfolio in an Uncertain Market – An eBook for Lenders of All Sizes
Canadian Mortgage Broker = Just a Rate Shopper? We Know You’re More, Make Sure Your Customer Knows Too
When someone starts the process of buying a home in Canada, often their first objective is to get the most affordable rate with the most flexible terms. Many people are rate shoppers. Some choose to deal with brokers simply because they think a broker’s role is to rate shop for them. One of your biggest challenges is showing them how much more you can do for them.
In dealing with this challenge, you are best served by showing them all the value that dealing with a broker truly provides. Aside from negotiating interest rates, brokers provide an abundance of additional value.
Make sure that your client knows that the process of buying a home is complex and there are two sides to the transaction – the purchase (which the real estate sales professional handles) and the financing. Especially when high ratio insurance is involved, they not only have to satisfy the bank, they also have to satisfy the insurer.
Getting a mortgage is not as simple as having good credit and a job. The property value has to be consistent with the purchase price, down payments have to be proven and there is specific information that has to be verified in very specific ways.
When you deal with a bank, you are dealing directly with the lender. An applicant may leave out critical information, not take the steps to provide explanations for things that could be a problem and don’t often realize that everything they put in their application must be proven.
A great example of this in proof of down payment. One may think having the down payment money in the account is all you need to show, but lenders will want to know that this is not borrowed money so they will ask for 3 months of bank statements to validate it. An applicant may waive the conditions on their purchase because there is a mortgage approval, only to learn after the fact that they couldn’t provide proof of attributes in the application in a manner that is satisfactory to the bank.
The beauty is, dealing with you means that they will be educated from the get-go regarding what they need to do and provide to you. You are able to independently verify information about the property that they are purchasing to ensure everything is copasetic. You create peace of mind because you make the process smoother and less stressful.
Don’t sell yourself short – make sure that applicants are aware of all the value proposition that exists by dealing with you because, at the end of the day, you are far more than just a rate shopper!
For more information about how you can validate information in your applications please visit http://purview.ca/.
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