Chapter 11: Initial Consultation Flashcards
Four places to meet clients
(4)
- Client home
- Mortgage agent office
- Outside location
- Virtually
How to verify identity of borrower
obtaining two pieces of ID
Define source
(1)
how applicant heard about the mortgage agent
Define co-applicant
(1)
individual who is applying with the applicant and who will be registered on title
Define Co-signer
(1)
helping the applicant get approved by being added
Define Guarantor
(1)
who is not registered on title but who is guaranteeing to the lender that if the applicant fail to meet his or her obligation under the loan the guarantor will meet those obligations
What is a file worksheet?
A file worksheet is a key component used for recording notes and more importantly providing a quick summary of the file.
Describe the documentation that must be obtained by a Mortgage Agent in every mortgage transaction.
(5)
Employment Verification
PIPEDA Consent
Photo Identification
Divorce/Separation Agreement (if applicable)
Child Support Order/Agreement (if applicable)
What documentation is typically required for a self-employed individual?
(3)
Financial Statements
Business License
Business Cheque
What documentation is typically required for a purchase transaction?
(5)
Purchase and Sale Agreement
MLS Listing
Proof of Downpayment
Rental Letter (if applicable)
Realtor Information.
What documentation is typically required for a refinance, equity take-out or switch transaction?
(6)
Current Mortgage Statement
Charge/Mortgage
Transfer/Deed
Property Tax Statement
Property Insurance Policy
Mortgage Repayment History (if applicable).
Discuss the importance of the file checklist.
A file checklist is a key component for ensuring that the required documentation is obtained on every transaction. This prevents the embarrassment of having to go back to a client for additional documentation in the future and provides a quick summary of what is in the file.
Why is it important to verify an applicant’s identity?
In today’s mortgage market, identity theft and impersonation are a significant concern, making it necessary for the Mortgage Agent to verify the identity of his or her client at the initial consultation.
Why is it important to have the mortgage application signed by the applicant(s)?
By having the client’s signature on the application, the Mortgage Agent has consent to complete the necessary investigations to obtain a commitment from a Lender. Although verbal authorization is acceptable, some applicants may dispute providing authorization at some point in the future.
If a borrower is doing a refinance, is the value of their house listed as an asset? Why or why not?
Yes, because it is owned by the borrower and is therefore an asset
