Timing is Everything; Don’t Leave it to Chance!
In my role as an Underwriter at Calvert, I have the opportunity to work with mortgage brokers and fund deals in less than 24 hours from the initial phone call.
After a brief conversation at noon one day, the Broker quickly provided the entire document package, and I was able to hand the client a cheque at around 11 am the next day.
To get this done, the broker provided me with all the documents required. Our team helped the Mortgage Broker complete all the due diligence:
1. Completed an in-house valuation to determine there was enough equity
2. Reviewed the documents and drew up a commitment within 2 hours of receiving the package.
3. I visited the clients that afternoon in their home, confirmed the value
4. Then went over and had them sign the commitment.
5. We ordered title insurance that afternoon and received it the next morning
6. We drew up the legal documents and the cheque.
7. The client then came in signed documents and left with their money.
The client was thrilled with the service and the work the Broker did in recommending they use us to fund the deal. The Mortgage Broker was the real hero in this and got a lot more referrals from this couple for getting them what they needed.
There is nothing more frustrating than a deal getting delayed. A client who wouldn’t or couldn’t provide the information or documents required to meet conditions on the commitment, or an appraisal taking longer than it usually should. The Lender who was unable to fund for one reason or another. As a Mortgage Broker, it can be difficult to provide excellent customer service to clients when circumstances were are out of your control.
The most common delays that we hear about are an appraisal taking at least 3-4 days, a commitment or underwriter review of documents taking 1-2 days, and then sign-off at the Lawyer’s office requiring a certain amount of time. But even with all conditions met, there was that unknown amount of time the Lender would take to instruct the Lawyer or the 3rd party signing company (such as FCT) they were using. The time for a Lender to create the legal documents and get them over to the Lawyer for sign-off could take what seemed like forever.
Timing is everything
Here are some examples of situations where time is a real issue to getting the deal done:
Purchases with a quick close
Bridge loans where the Lender on the purchase will not provide Bridge financing
Unconditional offers for an “As-is, Where-is” purchase
Financing falls through last minute
Preventing foreclosure to avoid legal fees and credit bureau hits
Business opportunities with limited time
CRA garnishing wages where it’s difficult for clients to keep up with payments
How Fast is Fast?
Fast forward to a few years ago when I started working as an Underwriter and Account Manager at Calvert Home Mortgage. I was surprised at how quickly we could fund a deal from receiving it to having a cheque in the client’s hands. I remembered back to some of the deals I lost because there was just not enough time to get it done. I wish I would have known about Calvert Home Mortgage then. I would have closed more of those time-sensitive deals.
At Calvert Home Mortgage, we do an In-house Valuation. Instead of 3-4 business days or longer to get an appraisal, we can do a desk-top valuation usually within 4 hours and not have that condition on our commitment letter. Knowing that the property value is acceptable gives Brokers a considerable relief because a low appraised value could limit the ability to get the deal done. It also saves the client money by not having an appraisal to do.
We Prepare Legal Documents In-House and instruct the client’s Lawyer directly without an additional Lawyer involved. Most Private Lenders require a Lawyer to create their documents and then send them to your client’s Lawyer. The timeframe for this would vary but have an additional group touching the file will add a significant amount of time. It also lends to another potential for mistakes being made that could cause further delays. Overall this is a significant time saver and saves the client money with no Lender’s legal fees.
We may be able to Sign Documents and Fund In-House. For transactions where a Lawyer is not required for purchase, like a debt consolidation or equity takeout, the client may be able to waive independent legal advice and sign directly with us. Using a Lawyer can add a significant amount of time depending on many factors. It is also another significant cost saving for your client to not use a Lawyer. This isn’t for every deal as not all clients want to, or should, waive independent legal advice, but when it makes sense, it makes the deal go quickly.
Account Managers are Underwriters; we make decisions by reviewing the entire file, and in some instances, sign the documents directly with the client. Having one set of eyes on a file from start to finish allows for a smooth progression. Often, commitment letters can be issued without conditions because the underwriter can work through everything needed ahead of time and very quickly.
Calvert Home Mortgage is the ideal partner for your business to help you get more deals done quicker. We work through deals quickly and efficiently and make every effort to create an effortless experience. We have your best interest at heart and deliver with quick review and funding of files to allow you to succeed in your business.