Communicating Committed Exit Strategies in Private Lending
In this Broker educational series, we sit down with Funding’s Senior Credit Manager, Arrin Bowker, to discuss what is paramount in a private lending loan application.
The quality of the initial application often dictates the speed of loan approval and settlement. To help brokers and borrowers, Arrin outlines the vital elements of an application and discusses the initial conversation that needs to occur to ensure all parties are across the loan and its purpose.
This video is part three of a six-part series. Here, Arrin clarifies the difference between a primary and secondary exit strategy and discusses why clearly outlining both is paramount in the success of a private lending application. It’s important to remember that an exit strategy isn’t a ‘choose your own adventure’ type scenario; instead, our credit team is looking at either a refinance, payout, or sale of the security property.
When the borrower/s understand and are fully committed to both a primary and secondary exit strategy, it means our credit team can review the application and proceed with settlement faster.
Stay tuned as we release the following videos to sharpen your private lending skills and submit high-quality applications.
Video 4 – Determining the Registered Owners on Title
Video 5 – How to show Tested Servicing
Video 6 – Addressing Risks with Mitigants
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Correctly Defining the Registered Owners on Title in Private Lending
This video explains why it is essential for brokers and borrowers to correctly outline all of the registered owners on the title when applying for a loan. In addition to ensuring all tenants are listed, the borrowers must also identify who is benefiting from the mortgage transaction (transfer of benefit).