Self Employed High Net Worth Borrowers present a unique set of challenges
In years past High-Credit, High- Net-Worth Borrowers were easy to get financed. Their loan applications had a warm glow of financial wherewithal that allowed them to slide through underwriting.
Today these same borrowers are finding the lending experience to be similar to the invasive medical checkup a Man gets around his 40th birthday. “Why do I have to paper-trail a $2,200 deposit?” or “Why do you need the last page of my Bank Statement when it’s blank?” and “Why does it take so long?” are common complaints camouflaged as questions.
THREE INGREDIANTS TO A INGREDIANTS TO A SMOOOOOOOOOOTH PROCESS
- Set the table….. We all like a tasty meal and preparation is the key. Brief your client on the terrain ahead. Tell them what to expect in terms of worst case and best case scenario. Explain the goals in grandeur and glory...using words like smooth and fast….Then give them the Nitty & the Gritty… Explain that underwriters don’t assume anything and will required complete detailed financial records. Don’t just give email the list of the documents you need.. Have a conversation and go through it and EXPLAIN why you need each and every item. Comprehending the REASON to your RHYME is paramount for an entrepreneurial borrower
- Give them a road map and/or itinerary The key is to eliminate frustration and confusion. Knowing what to expect is most of the battle.
- Serve generous portions of communication Provide detailed emails explaining why your underwriter will need a document. This will make the request easier to palate for your affluent borrower. Remember THEY KNOW that they are a good credit risk and aren’t always enthused about DEMONSTRATING it with documentation. Carbon Copy the buyer’s agent in on your email requests so they know you working to obtain the documents and hit the closing date. If they are informed they can help encourage the borrowers to capitulate. Finally a weekly phone call is an outstanding way to keep the relationship warm and fuzzy and receive referrals.
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