Application Mechanics and Pipeline Fundamentals
The intake conversation is the most important conversation in the transaction. Get it right and everything flows. Get it wrong and you spend the next 30 days chasing documentation. What the 1003 Collects Borrower Information: Name, SSN, date of birth, marital status, address history (2 years). Employment and Income: Two years of employment history, all income sources. Assets: All checking, savings, money market, retirement accounts — all institutions, all accounts. Real Estate Owned (REO): Current properties, values, mortgage balances, rental income. Liabilities: All monthly obligations — student loans, car loans, minimum credit card payments, child support. Declarations: Yes/no questions about pending lawsuits, other properties in default, citizenship, primary residency intention. The Income Conversation Get comfortable asking: Walk me through how you get paid — salary, hourly, commission, bonus, self-employed, any other income sources? Ask about frequency, consistency, and changes in the past two years. Pre-Qualifying vs. Pre-Approving Pre-qualify: Based on verbal information, not verified, limited value in competitive markets. Pre-approve: Credit pulled, documentation reviewed, AUS run. Default to pre-approval for any borrower ready to make an offer. Setting Expectations Every application conversation ends with: estimated timeline, what you need from them and when, what the process looks like, and any known risk factors.