Chapter 11 - The Initial Consultation Flashcards
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?
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
To ensure that all 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?
To prevent fraud (identity theft and impersonation)
Discuss the difference between a co-applicant and a guarantor
A co-applicant = goes on title and is equally responsible for the debt
A guarantor = not on title but is still equally responsible for the debt
Why is it important to have the mortgage application signed by the applicant(s)?
Gives the mortgage agent 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.
