Smart App Methodology: Accelerated Mortgage Application Underwriting at the Point of Application

In the world of mobile marketing and social media, app means application - a sort of software you install on your computer, tablet or smartphone to play a game or perform a task. App in the world of mortgage financing means mortgage application, which also translates to your bread and butter.

A mortgage application that is subsequently approved and proceeds to close is of great value. A mortgage application that is subsequently declined after being underwritten or doesn't make it through to closing because of some new or undisclosed information is not only not of value but is actually an expense. How great of an expense depends on you!

This leads us to Smart App Methodology. Smart App Methodology is the process where more is done at the application stage to vet the applicant to ensure that the deal is a good deal – both where the borrower and property are concerned.

When you take the time at the application stage, and not post underwriting/approval, to consider what key application criteria can be validated at the point of application, you are more likely to be in a position to identify the most problematic deals at the point of application. When taking a new mortgage application, the standard process is to perform a credit check and ensure that the application’s debt servicing is in line.

When deploying Smart App Methodology you would validate other key application criteria that includes:

•        Home ownership information
•        Mortgage information – current registered mortgages
•        Property value

Most deals that don’t close, fail to close because some information in the original application changes, such as other people on title, un-disclosed mortgages, mortgages that are much higher than what was disclosed on the application, an issue with the property type or value of the property being pledged as security on the deal.

Smart App Methodology improves closure rates substantially because it addresses the most common reasons that deals don’t close, thus greatly reducing the number of problem deals that make it past the application stage.

Smart App Methodology also presents great benefits because validating additional property related information at the application stage will reveal upsell opportunities.

Deploying Smart App Methodology doesn’t mean spending an arm and a leg performing searches or asking your client to supply a mountain of documentation, slowing up the application process. It means considering technology that can enable you to do more.

For example, you may use a tool like Filogix to pull your credit reports, underwrite your apps and submit them to lenders, or use online tools like Purview For Mortgage Brokers to validate property-related information such as who owns the property, value, registered mortgages and more…

Smart App Methodology makes you more efficient, leading to more closed deals and strengthened relationships with your lenders. Purview For Mortgage Brokers can help. Contact us today by calling 1.855.787.8439.