The Real Estate Sales Professionals Credit Report
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.