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Ramping Closing Rates 101 – How to Avoid Surprises on Closing Day!

As a lender, the last thing you want to deal with is low closing rates from your brokers or even your lending branches. Closing rates = dollars and cents. One of the biggest costs associated to a lending operation is underwriting. When you have a deal that proceeds into the underwriting process and then falls apart at the 11th hour, it costs you considerably.

The number one best way to ramp up your closing rates is to learn more earlier in the process. This means having the ability to validate key information that could potentially lead to a deal going south. Discrepancies as it relates to the property being financed are the biggest issues.

Value: There are key attributes to a deal where you simply shouldn’t take the applicant’s word for it. Value is one of them. If you, as a professional in the industry, have faced challenges estimating what a home is worth, imagine, especially in a hot market, how difficult it is for a homeowner to accurately estimate their home’s value. Misstated value is one of the most common reasons that refinance mortgages fail to close. Independently validating a property’s value, even before the application is fully processed, helps you identify these deals before you have wasted time fully underwriting the deal, ordering an appraisal and submitting your deal to your insurer.

Title: Similar to how many homeowners misestimate property values, they also often incorrectly provide information about their registered mortgages. Often homeowners think they have paid down more than they actually have, don’t realize that products like lines of credit may be registered on the home and may not even be aware that a lien has be registered on title. Validating registered mortgages and liens is a very fast way to identify these discrepancies.

Fraud: Simple occurrences on a title’s history can quickly turn into potential fraud. Occurrences like undisclosed non-arms-length transactions, companies owning homes, strange parties to a transaction (like a mortgage lender being on title), strange transactions like cash deals or multiple transactions over a short period of time are all on the list. Establishing and validating key measures to identify fraud will help you to avoid the most problematic deals.

Does this seem like a lot of information to validate at the application stage? Not so much. Tools like Purview enable you to do this effortlessly.

How about alignment? Educating your brokers with respect to the underwriting tools you use enables them to consider tools provided to them by the same providers so that you will all be dealing with the same information, thus reducing time spent negotiating and determining why your information and their information doesn’t match.

Supporting your referrers to ramp up their closing rates not only leads to more profitability but also to strong, healthier relationships. It’s a win-win all around.

At Purview, we make it easy to uncover potential problems in the early stages of a deal – and to create alignment with the other professionals you deal with.

Find out more by visiting www.purview.ca.

 

 

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