As a private lender you are just as susceptible to funding a bad deal or (in a severe example) falling victim to mortgage fraud as a big bank. The difference is that the larger lending institutions have access to a wide variety of tools and resources that you may not feel you have access to. Well here is the good news – technology has made it easier than ever to leverage some of the tools that your competitors do.
When you receive a deal – while the credit worthiness, character and income of the borrower are often factors in the decision to loan money and how much are factors in the lending process – avoiding bad deals and identifying crucial information about a property and its owners at the stage of an application being submitted is hugely beneficial.
Let’s face it – how many applications do you receive, especially in the area of mortgage refinancing, where the deal implodes at some stage in the lending process, often because of one of the following?
- The value is overstated – the appraisal does not come in on value
- Mortgages registered are far greater than initially disclosed
- Other mortgages are registered that have not been disclosed
- Liens are registered on the property (FYI – Purview does not automatically show Liens – only registered mortgages on title – Lenders would have to pull and pay for an instrument image to get to these details)
- Other people are on title that are not indicated in the mortgage application
When this happens all sides to the transaction lose considerable time and expense. This can easily be mitigated using common reports that larger financial institutions have been using for more than a decade. While real estate sales professionals turn to GeoWarehouse to perform property reports and mortgage brokers turn to Purview For Mortgage Brokers property reports, lenders turn to the Purview For Lenders property report.
This enables you to access information that identifies all of the above and more – including an automated fraud check. In the event that other people turn up on title, the value is way off or there are mortgages that create wide discrepancies in equity, you can go back and ask your borrower or mortgage broker to explain them, before expending time and energy underwriting the deal.
On the flipside, where more equity is revealed than initially anticipated and everything else checks out, you can proceed to order a full appraisal and potentially upsell the borrower to borrow more money from you. There are so many advantages to making use of the tools available to mortgage lenders that you no longer have to sit on the sidelines without having access to the same tools that your big competitors do.
Being well prepared from the very beginning can not only save you time and money, it can also help to encourage a strong and fruitful relationship with your client. Not wasting their time is often as important as not wasting your own.
For more about the tools you can access through Purview For Lenders, contact us today at call 1.855.787.8439.