Mortgage brokers and mortgage lenders often have to work together to close deals. But sometimes when brokers begin working with a new lender, the relationship can start out rocky.
Or, perhaps you’ve been working a mortgage lender for some time but are struggling to have a good relationship. Information might be missed, details lost in translation, or disagreements had over important information, such as the property value.
Miscommunication and misalignment can significantly slow down a deal. But as a mortgage broker, there are some steps that you can take to make sure that you and your lenders are on the same page, every time.
Problem: Your lender is declining deals.
Solution: Make sure you know why your lender declines deals.
Do you have a clear understanding of what they are looking for — the types of deals they actually want? Sometimes you have to step outside of your lending guidelines and ask your Business Development Manager (BDM) where their focus is. Doing this will enable you to better distribute to different lenders based on the types of deals they support.
Problem: Your lender is coming back and, without an appraisal, telling you they disagree with a property value.
Solution: If your lender isn’t getting an appraisal, where do they gain the insight into the value? Through automated valuation models (AVMs).
The solution here is to be aligned. If your lender uses AVMs to siphon through what applications merit working on, then you can do the same. Think of the time and effort you could save just by taking this simple step.
An AVM provides an estimate of the market value of a residential property based on the analysis of public record data, property location, market conditions, and real estate characteristics at a specified date. Unlike a full appraisal, it’s a mathematically based computer program. Typically, mortgage lenders might use an AVM as an initial gauge of a property’s value, and then verify that value with a full appraisal after they’ve determined if it is a potential fit for their business.
Mortgage brokers can access AVMs, too. If your lenders are using them, you’ll want to look at the same information they are using. Besides creating better alignment with your lenders, AVMs can help your mortgage broker business, too — at least when you choose Purview.
A Purview report includes an AVM, but it also features much more property information that you can use when evaluating a deal. For instance, the report tells you registered mortgage information and confirms who owns the home you’re looking at.
Purview reports are generated in real-time and in Ontario use up-to-date information from the Province of Ontario Land Registry Information System (POLARIS), which contains the most current and accurate land data available.
Learn how you can access your Purview report and get better aligned with your mortgage lenders today. Call 1.855.787.8439 or visit www.purview.ca.