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Here is a simple loan information worksheet emailed to me by Christopher Cruise, a fellow loan officer and great guy. It’s a prequal worksheet he uses himself, to help weed out the good, the bad, and the ugly mortgage loans. It’s simple, but it packs a punch. I know from experience, that using a tool such as this is a definite must. It will save you literally hundreds of hours in time and lost revenue. I use a similar, much more detailed prequalification worksheet as seen in my Sink or Swim System at http://www.loanclosingsystem.com (you can see photos of the actual sheets). Many companies have their own “in-house” forms they use. Many do not. If you’re not using a form like this, then you’re just plain shooting in the dark. Don’t make a mistake that will cost you your commission check. Print this newsletter out, and use it on your next loan. Your wallet will thank you. --------------------------------------------------------------------------------------- Loan Information Sheet By Christopher Cruise Customer Name: Phone Numbers: Subject Property Address: Email: Primary Motivation of this Borrower: Anticipated Challenges Getting this Loan to Closing and Funding” (Don’t give this document to the borrower; it is for internal use only.) What state is the property in? (Look for state adds/bumps/adjustments) Is this a purchase money loan request? If so, what is the closing date? (is there a “lock period add” because of the closing date?) Or a refinance? (if a refi, ensure you get 1st and 2nd mortgage info, and remember, many borrowers do not consider a HELOC a 2nd mortgage even though it is) Is this property a: _____ primary residence _____ 2nd home _____ investment property? (Check lenders re: 2nd homes or investment loan rules and adds) Is it a: _____ single-family home _____ multi-family property (2-4 units) _____ high-rise condo (more than 4 stories) _____ town home _____ co-op (Check lender rules and adds for property type) What is the value/sales price of the property? __________________ What are the balances, interest rates and original terms of all mortgages, home equity loans, and credit lines secured by this property? (If there are first and second loans that will be paid off, you must consider this a cash-out refi – which has adds - when calculating the rate unless the 1st and 2nd were taken at same time when the house was purchased; the borrower will need to provide the HUD-1 from the original closing to prove it.) How long do you think you will be in the house or keep the mortgage loan? (Suggest ARM, hybrid, or balloon if customer plans to be in house for less than 5 years.) Any problems or issues with income, assets, credit? (Get credit score if they know it. Ask if they can document income.) Are you self-employed? If so, for how long? (If so, possibly quote for stated income. Check lenders re: whether they do stated income and if there is an add for it.) What are your goals? (For example, lower monthly payments, shorten the term, take cash out) If you have more than one loan secured by the property right now, are you planning to pay them all off with this loan? If not, what loans will you keep? (If they plan to only refinance the 1st and want to keep their 2nd in place, explain that they will need to obtain a subordination agreement from the lender who now holds the 2nd. Also explain that the subordination agreement may take too much time and they may have to pay for a rate lock extension if it does. In general, try to avoid this – try to get the customer to pay off everything. You can get them a new second. Be sure to check for cash-out adds.) If you are looking to take cash out, how much do you want to have after we have paid off your current loan(s)? (Figure out total loan amount, including closing costs and cash out. Check for adds for loan amount and for cash out.) Do you want a loan with points, without points or with no costs? (If they say no cost, you need to be sure to have enough overage - YSP - built into the rate to cover closing costs. Avoid this if possible - better to roll closing costs into the loan so the borrowers have little out-of-pocket costs. Also explain what costs are covered and what costs are not covered - this is very important.) Do you want to waive escrows for taxes and insurance? (Check for lender rules and adds for escrow waiver.) Additional Notes: --------------------------------------------------------------------------------------- Thanks again to Christopher Cruise for providing a great resource and helping fellow loan officers across the country. It is the willingness of colleagues to share information, that makes this a truly great industry to be in. :-) If you have a useful tool from your origination adventures, you’d like to share, email me at roblawrence@battlecall.com and I’ll be sure to share it in an upcoming edition of this newsletter (with full credit given). Click here to see a printout from a recent commissions report with my biggest month ever! Download the entire system now and start earning more money immediately. Click here...
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