A mortgage broker who is able to work quickly and efficiently has an edge over their competitors. While having a proper CRM process in place helps you operate your business smoothly, it won't necessarily help you land deals with lenders.
If you’re looking for some insights into how to get your deals approved quickly, you’re in luck. We’ve asked the Alternative Lenders on Lender Spotlight to share some tips.
TIP #1: CULTIVATE PERSONAL RELATIONSHIPS
Investing your efforts into cultivating personal relationships goes a long way for a broker. That’s not just true with clients, but with lenders as well.
A representative from WealthONE Bank says “one thing that I find successful for brokers who have a potential application is to pick up the phone and call us to discuss the deal. This is especially important for the type of deals that we specialize in (ie: multiple rental properties owned by the applicant(s), self-employed individuals where the use of bank statement deposits is required). Many times a phone call, whether it is for 5 minutes or 60 minutes can turn a curious broker into a loyal repeat broker.”
He then tells us a story of his recent interaction with a broker: “Most recently, a broker called me after hearing about us and I spoke with her for approx. 45 minutes, answered all of her questions and explained what we are able to do. Many times, brokers will listen but not really listen. In this case, she did and sent me a deal within a day. After that deal was approved, she sent another and then another. In a matter of approx. 2 weeks, she sent in 8 deals and 3 have already been funded and the remaining 5 are scheduled to fund this month. She will probably be $60,000 richer by the end of the month.”
He goes on to add that “open communication is key to our business. It is not only about who has the lowest rate. The broker invested a little bit of her time with me, as did I with her, and in the end, we both win.”
Finally, he adds that “very good deal notes and documentation organization is key to reviewing, approving, completing and funding applications.”
TIP #2: KNOW YOUR STUFF
Meanwhile, a rep from Equitable Bank says “the biggest tip I would say to brokers is to know your lenders criteria exceptionally well. With rising rates and a slowdown in sales activity, it's imperative to properly educate clients on the right solution. There are so many “unique” products being offered by institutional lenders that it’s important to understand their intricacies to avoid placing your client in the “wrong” solution. In addition, exploring other niche markets, such as Reverse Mortgages, will provide
a boost to your business, as this demographic of Canadians is continuing to find traditional mortgage financing, in order to age in place or provide economic assistance to their children trying to enter into the market, even more difficult.”
Community Savings supports this by saying that “the best tip we can give is to use the correct rate and amortization for qualification as we offer both stress-test and non stress-test mortgages. They have different rates and amortization requirements.”
TIP #3: DISCLOSE ALL SOURCES OF INCOME
IC Savings suggests that “to assist with affordability review, it is important to disclose all sources of household income even if non-traditional, so that a full financial picture can be considered at time of submission.”
TIP #4: STOP, DROP AND ROLL
MCAP breaks their tip into 3 key steps: “Remember to STOP, DROP and ROLL! Stop and wait until you have all the documentation before submitting. Drop: organized pdfs into the portal. All the down payment, income and property documents should be separated for easy review. Avoid dripping down payment documents piece by piece and wait until you have it all so your underwriter can review everything at once and sign off. Then, roll onto the next deal! Having everything upfront avoids the painful back and forth so you can get the deal complete and move on to the next one.”
TIP #5: PAINT THE WHOLE CLIENT PICTURE
Community Trust says “the number one tip is to interview your client and understand their entire financial position. Ask critical questions regarding their affordability, what can they afford to pay and why? Match that with lenders that offer a partnering niche products, Bank statement program, Non-conforming, 35yr Amortization.
As the old carpenter's saying goes: measure twice, cut once. Double check policy, product, rate, and restrictions before submission to ensure not only the applicant and application fit the lenders guidelines, but that the rate will be accurate as well.”
As for Connect First, they say that “the best tip we have is to know your customer and share the story. For us, the overall story matters, but only if we know what that story is (tell us the skeletons too)! Help us understand why it makes sense to do the deal. The story can turn a tough deal into an easier deal as we can understand the rationale for the challenge and mitigate it.”
One lender gave a seasonal tip: “Spring is usually when homebuyers start shopping, and with the market rapidly changing, it has become more competitive. At Haventree Bank, one thing remains constant: understanding Canadians and their stories. The best way to get a deal approved with Haventree Bank is to provide all the information we need up front – we want to see the whole picture. This means supplying clear documentation and including your client's current and future financial goals to tell their story.”
Remember that no matter the nature of the deal, lenders are always ready to help you find the best solution – but you should be aiming to make their job easier too.
We hope this was helpful and allows you to get your deals approved quicker. Be sure to check out these lenders and more on Lender Spotlight, and happy filing!
Want to optimize your process and submit deals faster? Book a 15 minute discovery call to see how we can help.
