Credit Application For Lenders and Mortgage Brokers

[MarkRichmond]

I have been receiveng a fair number of calls from out of state lenders and mortgage brokers and I usually request the fee at the door when I go to do an inspection. On occasion, I lose an order from lenders that will not agree to my terms and I was wondering if anyone requests a completed credit application (complete with payment terms, refrences etc) if a new lender demands terms?

Having come from retail I used to fill these out all the time and feel this might help avoid deadbeat lenders if I can check refrences and have the agreement in writing.

Does anyone do this currently?

Does this improve your collections?

Thanks,
Mark

 

[David S. Roberson]

I think I've seen posts by Ruth in Michigan where she does this. Am I correct Ruth? I've often thought of doing this, but I figure if they're deadbeats they will refuse & just call someone else. Maybe I'm wrong. It would be a rare occurrence, but anything is possible.

 

[jtrotta]

Not answering for Ruth; but she does have a specific "letter of engagement" that needs a signature and it does spell out the "Terms & Conditions" with reference to payment.

I'll also have one of a stronger content, but have opted for the "Pay At The Door" over all else; the way I see it if you can't collect $200 / $300 /$400 - or whatever your fee is at the door, these folks have No Business refinancing anything. In other words if they don't have the stinking $500 to get the job done, what makes them believe they can re-finance and take out $10k to $100k and spend it any way they want and not have enough money to pay for an appraisal; On the other hand-any Lender stands to make from $2,000 to over $10,000 on any variation of "a deal" - yet they never have the stinking $500 for the appraisal. So my theory is if you can't pay "me" - then you don't need the money as bad as you say and with that I bid you a fond farewell :roll:

 

[Jan Ziozios]

Our company also stresses that COD is preferred with a company we are not familiar with. However, sometimes the lender/broker will press to be invoiced. At that point, we will offer to fax them a one-page credit application, and will extend them a limited ($800) line of credit, which will allow them to have a few appraisals in the pipeline with us at the same time. Usually, one of three things happens. Either they fuss about completing the form (in which case, this is a client we don't want), or they request the form, but never return it or an order.(another flake) Or they will complete and return the application, and be a perfectly fine client. I've found that having the credit app to offer is a great client screening tool.

jan ziozios
Royal Oak, MI

 

[bobburnitt]

[We need a forum to tell people how to use this damned new forum.

Bob Burnitt in Texas

 

[Bill S]

I wouldn't know how to go after an out of state lender. I only do COD with them

 

[Stephen J. Vertin MAI]

Mark:

I use a letter of engagement if the fee exeeds a certain amount. I have done this since the 1980's.

Steve Vertin

 

[Stephen J. Vertin MAI]

Mark:

I use a letter of engagement if the fee exeeds a certain amount. I have done this since the 1980's.

Steve Vertin