Summary:

Some borrower mortgage brokers tend to spend little time collecting and reviewing the documentation relating to a loan request. For instance, a missing signature on a key document or an incorrect property description can delay the loan process. The documents submitted are often incomplete or misleading. For example, a loan application form with missing sections or a property description that does not match the actual property can lead to delays and misunderstandings. Brokers should be vigilant in ensuring their documents are complete and accurate.

Article:

Brokers who aim for a swift and professional response should ensure their files are well-organized. This presents a clear set of facts to the funding lender and empowers you with a sense of control over the loan process. In today's digital age, this means submitting it in a PDF format.

Facts should include:

• Summary of the proposed loan transaction- Amount, term, first, second, refinance, purchase money, cash out.
• Purpose of loan and loan proceeds
• Could you explain the collateral property address, type, description, and condition?
• Loan application form, either a standard 1003 or a commercial loan form if other than 1 to 4 residential units
• Estimated opinion of value with value conclusions, by whom the opinion was offered, and including the supporting data and source(s) if available.
• Provide an income stream for income property, if it exists, along with a rent roll, financial statement, and a list of who prepared the foregoing.
• Cash flow from borrower and property (net operating income) is available to make monthly payments.
• Potential exit strategies: sale, refinance.
• Any noted strengths and weaknesses of the borrower or collateral property.

The funding lender's job becomes significantly faster, more efficient, and more enjoyable when the borrower's broker invests time in understanding their transaction and articulates the material facts accurately the first time. This is why you're responsible and essential in the loan process.