As published in Scotsman Guide's Residential Edition, November 2011.
For a loan to be successful, mortgage brokers and originators must communicate expectations effectively to their clients and then work to make sure the objective and expectations are accomplished. To set proper expectations, originators must do their due diligence upfront, including thorough background checks on the borrower as well as the property. Doing the minimum amount required by the loan application could mean more work for you — and your team — later.
A successful mortgage experience requires the originator to take control as a trusted adviser. When setting expectations for the loan, consider the type of financing required. Is it a condo loan or a Federal Housing Administration loan? Is it for a self-employed borrower? Has money been gifted or large deposits made? Were there any recent job changes? Any overtime pay? These factors set the stage for different expectations.
As you navigate the loan application and acquire a client’s information, the process demands completion of each part. Don’t just fill in the answers; ask questions along the way and be as thorough as possible. If an issue does arise, handle it proactively and make sure you solve it.
Always get the mailing address and employment history for the past two years. If you don’t, the incomplete application will take longer and each party involved will be inconvenienced, especially the client. Use plenty of detail to fill in any gaps regarding income, bonuses and overtime information from each borrower. Ask important questions, such as whether a client deducts expenses that haven’t yet been reimbursed. Ask about self-employment. If one of the two people on the loan are not being used to qualify income, ask if that other person is working or has worked. The answers to these questions will help you package the loan as well as get to know the borrowers better.
As you take the loan and complete the application, take notes on a separate piece of paper; note the information and the challenges you encounter as well as how you solved them. When you submit a loan, it has to make sense and it’s your job to answer any questions that processors and underwriters have. Get all the information you can, including addresses, telephone numbers, company names, insurance brokers’ contact information and accountants’ contact information. You must tell the full story. By doing your homework, you will help everyone going forward, plus you’ll have potential contacts to build relationships with for future business.
After you’ve taken a thorough application, explain to the borrowers what will happen next, including due dates for each piece of paperwork. By being as clear as possible and setting expectations early, you will be a hero to your colleagues and clients. When you turn in a loan to the processors, they should be able to understand 100 percent of the loan and how you arrived at the information on the application. The best brokers and originators follow their deals — and their clients — through to closing.
By preparing all the information for your deal, you will minimize any unnecessary delays as the loan goes to underwriting, quality control and all the way to closing. Your team will respect you and your clients will appreciate you — and likely refer you to others who need a mortgage done right.
Chip Poli, CEO of Poli Mortgage Group Inc., has 20 years of broad-based experience in the mortgage and real estate industry. His expertise includes management of highly successful loan originators and sales teams, real estate sales, recruitment and leadership abilities. Poli Mortgage Group Inc.
has more than 100 staff members and writes more than $1 billion in loans annually. Contact Poli at (781) 801-1400. Visit polimortgage.com.