As a lender, once an application gets to you, it is easy to assume that those involved with the transaction have done their due diligence. Sometimes this is the case, and things move smoothly. However, other times that due diligence may be left to you, and in order to avoid surprises on closing day, there are a few things you can do.
The best way to avoid surprises on closing day is to get as much information at the beginning of the process as possible. Validating the stated value of a property is crucial, as the overall approval hinges greatly on this number being accurate. Knowing who is on title is also essential, as an unnamed party suddenly showing up on closing can throw a wrench into the whole thing. If discrepancies exist with either of these things, and you spot them early on, you can ensure that the application doesn’t go ahead until all issues are remedied.
Fraud is another issue. Undisclosed non-arms-length transactions, companies owning homes, or even strange parties to a transaction can signify something is off with the application and thus requires further investigation. You absolutely don’t want an app to go through the motions only to end up costing you a great deal in the end.
Purview For Lenders has the tools that make validating property information simple. Assessing and verifying value and title holders, as well as ensuring fraudulent practices have not been employed, can easily be achieved online in a few simple steps. You can find out more about this here http://purviewforlenders.com/ramping-closing-rates-101-how-to-avoid-surprises-on-closing-day/.
At Teranet, we are dedicated to providing you with the most up-to-date, accurate property data available. Find out more at www.teranet.ca.