Mortgage agents and brokers in Ontario heavily rely on the Equifax Credit Report to assess the credit worthiness and serviceability of an applicant. Really, if you think about this, a real estate sales professional could put together, based on the tools that they have in front of them, a veritable credit report that considers the client and the property being purchased and sold.
Let’s look at your average real estate transaction and its components – this is after the client has been landed - you are going to want to know the same things across the board about your client and property – negative attributes may prevent you from working with the client, positive ones let you know that you have a good, clean deal.
- What is the sales history on the property – both transfer amounts but also transferees?
- What is the legal description of the property?
- What are the comparable sales in the area?
- What things in the area are potential benefits or concerns?
- If it is a condo – is the financial standing of the condo corporation good?
- Is your client currently the legal owner of a property?
- Does your client have enough equity in a property being sold to finance the closing costs?
- Does your client have enough equity in a property to finance the down payment of a subsequent purchase
- Does your client have multiple mortgages or liens against the property – this could be a sign that your client has financial problems?
These questions and more can be answered by performing a property search in a tool like GeoWarehouse which will enable you to validate who owns a property, its history, value, financial standing and more.
Creating your own form of credit check for your clients helps you identify potential challenges early on in the process of engaging a new client. You are the first in a series of professionals who will be called upon to work on the transaction you have originated – mortgage agents and brokers, lenders, appraisers, property inspectors, stagers, real estate lawyers, title insurance companies, property insurance companies – even the municipality.
Doing your part to vet the client not only saves you time and expense but also saves all the other professionals that will become a part of the transaction time too! This is not to mention that the due diligence measures outlined above also go a long way to cut down fraud in the mortgage industry.
GeoWarehouse can help you conduct this credit check - visit www.geowarehouse.ca today.