A Simple Tip for Private Mortgage Applications
The approval process for private mortgage applications tends to be faster than traditional applications.
However, it’s important to understand what private mortgage applications require to get the approval.
When a broker is dealing with “A” rated deals most days, it can be hard to remember what to ask when a deal comes in that requires a private mortgage application.
Thankfully, there is a simple trick that can even be used over the phone to help pre-qualify a potential client.
All you need to do is simply go through the 5 W’s of the deal; the Who, What, When, Where, Why, and How.
WHERE is the property?
- City/Province and address. If it’s rural, what is it close to and how would a lender find it on a map.
WHAT kind of property is it?
- Residential, Commercial, Acreage, or other?
WHY do they need a private lender?
- Is it a credit issue or an income problem? Is it a rural property or unique location? Is it a title issue such as a leasehold interest or Option to Purchase?
WHO is the borrower?
- How is their income/employment? Beacon scores?
WHEN do they need to close?
- Is this a panic because an “A” lender backed out at the last minute? Or is it a purchase with a distant closing date?
HOW will they fix their situation and pay the lender out?
- The exit plan must be clear for Private Lenders.
By employing this simple strategy before you fill out a private mortgage application and begin pulling credit reports etc., you’ll already have most of the information that you’ll need. And be all that more prepared to start calling your private lender partners.
The underwriting team at Kokanee Mortgage is always happy to help you sift through the information on new applications. Our experienced underwriters have extensive knowledge to help figure out solutions to best serve your clients.
