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Credit Application For Lenders and Mortgage Brokers

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MarkRichmond

Thread Starter
Freshman Member
Joined
Jan 16, 2002
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

Senior Member
Gold Supporting Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
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

Senior Member
Joined
Jan 16, 2002
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

Freshman Member
Joined
Jan 17, 2002
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
 

Bill S

Junior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Illinois
I wouldn't know how to go after an out of state lender. I only do COD with them
 

Stephen J. Vertin MAI

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Illinois
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

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Illinois
Mark:

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

Steve Vertin
 
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