Welcome to the Guardian Financing May 2017 Monthly broker’s newsletter. This month’s issue is on the various tips a Montreal mortgage broker can use to increase the number of deals they close.
5 Tips That Will Help You Close More Mortgage Deals
The mortgage industry changes almost all the time. New guidelines, client behavior, and the state of the housing market are some of the factors responsible for the variability within the industry. For brokers, this implies constant learning and self-improvement, so that you can be at the top of your game at all times.
At the core of operations, every broker develops their ability to generate leads and close deals. In response to recent changes being experienced throughout the industry, here are five tips to help you close more mortgage deals, especially in 2017 and beyond:
1. Have a good understanding of the lender’s guidelines
As a mortgage broker, you interact with multiple lenders on a regular basis, and one of the mistakes most brokers make is to assume that lenders all use the same guidelines regarding the mortgage approval process. This couldn’t be further from the truth.
It is imperative to take into account that lenders don’t have the same guidelines and to keep in mind that guidelines often change, based on various conditions that impact the market. As a result, if you want to ensure that your mortgage applications are not rejected, and you want to be in a position to close more mortgage deals, you must remain up-to-date concerning each respective lender’s guidelines.
2. Know your client very well
To close more mortgage deals as a broker, you must have a good understanding of each respective client. You must ask the right questions, even if they do not easily roll off the tongue, and may contain sensitive information. It is up to you to acquire funding for your clients, and unless you can convince lenders that your clients do not pose a significant risk, you won’t be very successful.
Don’t be afraid to ask why they have had four jobs in two years or maybe why they are not including their spouses on the title. The response to such questions will give you more insights into who they really are and will boost your confidence, making it easier when facing lenders. Information is power!
3. Always be honest
You should avoid withholding any detrimental information due to the fear of the application being rejected. If anything, misinformation will eventually be discovered and if you were not honest, you may be left with a depreciating reputation amongst lenders, which will inevitably affect your ability to close more deals over the long-term. Therefore, be very honest and come clean. Lenders will appreciate the fact that you are honest and this may increase their confidence in working with you on future deals.
4. Ensure the application is complete before submission
Surprisingly, many brokers still submit applications that are incomplete, based on the assumption that certain information may not be necessary for the purposes of issuing the mortgage. For instance, you may omit the client’s balance sheet or assets, thinking that they are not relevant. Such must always be submitted, as the underwriters will need them in determining whether or not the applicant is a good candidate for the mortgage applied for.
5. Avail good notes
With good notes, you increase the likelihood of securing an approval. Make it a habit to enter concise notes and ensure that they are all relevant to the credit decision. Most underwriters get a lot of irrelevant details such as religious backgrounds, family history etc. No need to include details that the applicant is a great soccer coach or the most loving husband on the planet! Remain focused, relevant and goal oriented at all times.
Guardian Financing is direct private mortgage lender. We serve the greater Montreal area providing residential private mortgages, from $50,000 to $500,000 with rates starting as low as 9.00%. At Guardian Financing, Private Mortgage Lending is “Simple, Easy and Quick. Contact us today to start your file at 514-700-3121 or by email at files@guardianfinancing.ca.