Top 10 Must-Ask
Questions Before You Submit A Private Deal

At any point in the mortgage process, an issue can arise and put the deal in jeopardy. This can result in costly penalties, wasted time and energy, and an unhappy client. Especially when working with your private lender, it’s important to have a well-rounded borrower profile so that underwriters can provide the best solution for the circumstance, and approve the financing quickly. Incomplete files require a back-and-forth between the broker, which can cause unnecessary delays to financing, and could even end up in a lost client.

If the property is a rental, ask follow up questions on whether there is an existing tenant, and projected or actual rental income.

Ask for confirmation to prove the source of down payment (i.e., bank statements and any recent mortgage statements). For more information, you can see CMI’s blog on hidden fees.

Ask further questions to learn the story behind any arrears and obtain a copy of the most recent mortgage statement and/or the most recent property tax statement.

If the answer is yes, who completed the appraisal?

Ask about salary and compensation, whether hours are guaranteed, and employment history. Request a copy of the client’s most recent paystubs, T4s and Notices of Assessments (NOAs). If your client is retired, how long have they been retired and do they have pension income? If your client is businessfor-self, what is the business and how is their compensation structured?

Where a borrower has damaged credit, learn the story behind their situation. Ask follow up questions including whether the client has any collections, and obtain documentation to support updated payments.

If your client has filed for bankruptcy, ask whether it has been discharged and whether a mortgage was involved. In the case of a consumer proposal, learn about what led the client to file, and the status of monthly payments. Obtain copies of discharge documents where possible.

This question provides an opportunity to teach clients about their credit rating teach clients about their credit rating and offer solutions to help them rebuild it.

Aside from having a backup repayment plan, an exit strategy is also an opportunity to show clients how an alternative mortgage is critical to their long-term financial goals. The more feasible the exit strategy is, the more confidence underwriters have in the submission.

Create a plan with your client to transfer to a prime lender within 12 to 18 months. Discuss ways to keep up with financial obligations and achieve a credit rating that would assist in qualifying for traditional financing.