- They purchased the house so long ago and a lot has changed in the neighbourhood or area
- They live in an area where the market is really hot
- They have a unique property type
- The area where the property is located is very mixed
- They simply haven’t paid attention and don’t know
When the customer applies for a mortgage with a broker or a bank, they are always asked “what is your home worth,” but what’s next?
- Some brokers will further ask when the client bought their home and what they paid for it
- Some will ask if the client has had an appraisal recently and what the value was
- Some will ask what the value is on the property tax assessment
- Recently, brokers began receiving access to the Purview Automated Valuation Model (AVM) tool, so now some brokers will request an AVM at the application stage
For those in the first 3 groups – How can you determine, when you receive an application, that you are positioned to make the most out of the deal? We can tell you how.
What are the 3 things that matter the most on a deal:
- Proof of Income
Here is a great example: in the credit category, lenders use the client’s credit history to both mitigate risk and identify upsell opportunities. In this category, lenders who lever soft credit report hits have the competitive edge because they are able to see how their clients’ situations have changed and where they need to re-arrange the relationship accordingly.
In the area of equity, not double checking the client’s equity positioning at the point where a broker or branch sends you an application is a total missed opportunity. Never mind avoiding bad deals and increasing closing rates, an AVM will provide vital insight into the property and borrower you are financing. Things like:
- The sales history on the property
- Sales comparables
- An estimated value
- Registered encumbrances and more
Armed with this information, you may discover that you are perfectly positioned to offer that client a secured line of credit because there is more equity than anticipated, or recommend leveraging more home equity to achieve other financial goals.
For more about the benefits of an AVM, please contact Purview For Lenders today by calling 1.855.787.8439.