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Top broker: Get your 'docs' in a row

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Mortgage Broker News | 22 Mar 2012, 04:16 PM Agree 0
It’s a request many brokers fear will scare away clients, but a top B.C. player asks for ALL supporting documents right after meeting with a lead – a way of gauging buy-in levels.
  • Rob Stanfield | 23 Mar 2012, 05:12 AM Agree 0
    I agree with the process and have done it this way for years. The email list above may be a little to detailed and scare some borrowers, but if this process is presented properly, it works extremely well at measuring the level of commitment your client has to you. Don't see why anyone would not request documents once they have talked to clients. I request documents as soon as the first phone call has taken place and ask them to be brought to our first meeting. A lot of times I don't even have the commitment from the lender yet or even submitted a deal. The big bonus in doing business this way? It makes you look professional, competent and very knowledgible.
  • Kevin J. Power, President Power Mortgages Inc. | 23 Mar 2012, 05:18 AM Agree 0
    I agree with this practice and have been doing something similar for years. This is only common sense to me. How do you do a proper pre-approval if you don't have anything to base fact on, you are dealing with fiction.

    I have seen many, many cases of mortgage people doing a terrible job on pre-approvals.
  • Ron Butler | 23 Mar 2012, 05:23 AM Agree 0
    I think this kind of approach works very well with well qualified referred leads that come from strong sources. Unfortunately in a practise where we do media advertising this level of up front document requirement prior the applicant even seeing a commitment from lender is not in the cards.
  • What's the issue? | 23 Mar 2012, 05:23 AM Agree 0
    Most (if not) all experienced brokers do this (or should do this). Dustan is right about gauging client interest. A "committed" client will do this. It is just smart business practice. I hope new brokers are being trained on this at their respective brokers. The part about some brokers being hesitant about asking for docs upfront to me equates to being afraid to ask for the business.
  • Tiffany - Grande Prairie, AB | 23 Mar 2012, 05:45 AM Agree 0
    I think this is a great approach! This allows deals to move quickly and if clients mistakenly provide you with inflated income numbers (including bonuses/income)you know ahead of time instead of being caught off guard. This alleviates problems with conditions delays and allows lenders to be more efficient. I agree as well. If presented properly people do not hesitate.
  • Neil | 23 Mar 2012, 05:45 AM Agree 0
    No doubt - the more you get up front the more you own the client. Especially if you get to hold the ORIGINAL of the documents. Hard for them to shop now!
  • Julia Krause | 23 Mar 2012, 06:18 AM Agree 0
    Wait a tick... am I missing something? A 'top broker' is asking his clients to start gathering supporting documentation at the beginning of the mortgage application process?? Is it 2012 or have we gone back in time 20 years?? Any broker who DOESN'T tell clients what documentation will be required, and to start gathering it, right from the start, is only setting him/herself up for failure and a huge waste of time.

    And other brokers out there think that asking for documentation at the start will scare clients away?? Wow... I was worried for the industry when I was out there training brokers between '05 and '08... now I'm REALLY scared of what brokers are doing. Is anyone being trained properly in how to be a mortgage broker?? Documentation is STEP 2 of the process, right after STEP 1, which is taking an application.

    It's a sad sad state of affairs in the mortgage industry when a broker asking new clients right away for documentation is a NEWS item :(
  • Gale Tracey, Lead Planner, Mortgage Architects | 23 Mar 2012, 07:08 AM Agree 0
    REALLY! You will quickly find out if a potential client is just shopping you if they will not provide you with adequate documentation so that you can properly analyze their financial situation and provide them with their best options and a good mortgage plan. You cannot even think of obtaining any sort of approval for them without confirmation of income and down payment, etc. Never ASSUME. You have to have your priorities straight as to where to spend your time and it is not on clients that will not provide you with documentation up front so you can best serve their needs and offer them a Mortgage Qualification that they can confidently use to start the purchase process etc. How many times have you heard "My bank told me I qualify for $$$" and later we find out it wasnt even close!!
  • Angela Kroemer, AMP | 24 Mar 2012, 06:37 AM Agree 0
    I too, have adopted this practise of asking for the documentation up front. Too many times,I have wasted my time with a client to find out that they don't know where their paperwork is. Or how much they thought they were making was not auctual.
    How did these top brokers get to be top brokers? By not wasting time with clients that have no documentation, are sitting on the fence or are shopping around. They spend their time with the clients that are ready and willing to go buy the house.
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