When working with an MIC or alternative lender, leading your pitch with the property is your best bet for success.
Knowing all the details about the property from the start is how the MIC or alternative lender can deduce if they’ll want to or are able to proceed with the file.
Where the ‘A’ lender wants all sorts of income information, the appraisal often almost seems secondary. If the borrower’s income and financial history doesn’t fit their parameters, the appraisal is often a moot point.
In some ways, working with an MIC is the exact opposite of working with an ‘A’ lender.
For MIC lenders, it’s all about the property. When phoning or emailing potential MIC’s about your deal, the best thing to do is lead with the property. Make sure to include all the vital details about the property in your pitch as well:
- Where is it? Is it an urban, rural, or small-town setting?
- What kind of property is it? Is it residential, commercial, acreage, etc? What is the condition of the property? What is the age?
- How much do they think it’s worth? And what is the loan amount that is being requested?
There is no denying that credit scores are important. Just as employment history is important and exit strategy is important.
But questions about credit scores, employment, and exits are only asked after we, as alternative lenders and MICs, know that the property is one that fits our underwriting. If we have the answers to all our questions regarding the property first, we will be able to give you an answer. We will know almost immediately about whether the deal will be a fit for us or not.
So, when you are working with an alternative lender or MIC, remember to start with the property. And give Kokanee Mortgage a call so our underwriters can help with any issues from the start.