Transparency helps avert the usual stumbling blocks that lead to delays, says exec
Beyond ensuring effective solutions for consumers who were turned away by banks for one reason or another, brokers going through private lending channels must exercise the appropriate level of care in organizing their clients’ files.
This is because such due diligence paves the way for the smoothest possible transaction, according to Steven Lang, national sales manager at VWR Capital.
“If you want a $1.5 million home and the borrower is making $45,000 a year fixed income, they’re not getting a mortgage with us, typically,” Lang told Canadian Mortgage Professional.
Broker transparency at the onset will also help avert the usual ambiguity that leads to delays in lending, Lang said.
“Private equity lenders don’t have income confirmation; however, we need to know the story,” Lang said. “We need to know the ability to pay. We need to know an exit strategy. When we talk to the broker, if there are no notes on the file, it becomes difficult, because you make up the story in your head yourself, which is full of assumptions.”
Lang continues to encourage brokers to ask the right questions, to refrain from merely smiling and nodding “and [sending] it in, and it becomes somebody else’s problem to decline it. That is not how we operate here.”
This level of transparency also serves as the foundation of fruitful long-term business relationships.
“That’s why it is super important, in the beginning, that we deal with the right broker for the right clients, and that we have a great touchpoint, so that we can continue to build our trust with each other as a brokerage,” Lang said.
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