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Mortgage Application Tips: How to Validate 75% of Your Information in Less Than 15 Minutes

Validating the information in a client’s mortgage application is a critical step in the mortgage underwriting process. Not getting necessary information can cause a broker’s deal to implode. It can also result in fraudulent deals being brought forward to lenders.

Some of the most critical information in your mortgage application you will need to validate is:

  • Income
  • Home ownership information
  • Property value
  • Registered mortgages

 

These four things are the most common items that could throw a major wrench in your deal!

Other things to watch for:

  1. If there are undisclosed homeowners on title and the other homeowners don’t qualify or don’t want to sign, then a deal can’t close.
  2. If the property comes in way under value, the deal may not close depending on the equity positioning.
  3. If there are undisclosed mortgages, the deal may not close.

 

You have to rely heavily on what your client tells you – and often applicants provide inaccurate information, which can impact the closing of your deal. And when deals become problematic on the eve of closing as a result of inaccurate information (often uncovered by the real estate lawyer), it can strain relationships with lenders, especially if it happens often. You and your lender stand to save valuable time and expense by doing good due diligence at the application stage.

Luckily, there’s a way to identify these problematic deals so that you can focus your time on business that you can make happen. — your Purview report.

Purview report attributes:

  • Ownership and sales history. This tells you the current legal owner and provides a history of sales, dates, amounts, and transferees.
  • Estimated value. This is an automated valuation model (AVM) generated value range for the subject property.
  • Equity estimate. This looks at mortgages registered against a property, which you can compare against your application.
  • Comparable sales. These validate the AVM and also prepare you for what to expect in an appraisal.
  • Aerial images. This enables you to see things from above the property that could be an issue for your lender. This is especially relevant when putting together deals where the lender is private.

 

Validating the information in your mortgage application before you submit it to a lender isn’t a step you want to skip. When all is said and done, one of the three things will happen:

  1. All of the information on your deal will check out and you can be affirmed that you have a good deal
  2. You will identify an issue that enables you to go back to your client and ask more questions, which will remind them why there was so much value in hiring a professional like you to represent them.
  3. The information will reveal more equity than expected and you can upsell your deal.

 

The fastest way to validate the information in a client’s mortgage application is through your Purview report. When sourcing a tool to validate homeownership information, the data source is important and so is its accessibility. Choosing a tool that is available online and provides results instantly makes validating this information easier.

Not a Purview customer yet? Call Purview today at 1.855.787.8439 or visit www.purview.ca.

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