We receive frequent calls from new clients that tell us horror stories they experienced with their bank. Some have told us that their bank gave them no reasonable explanation as to why they were refused a mortgage, while others have been told some lame excuse that make no sense at all. Sometimes the issue is poor credit or lack of a credit rating. It always surprises me how many clients, after seeing their personal banker, have no knowledge whatsoever of the information that was on their credit bureau report which their bank had in their possession. What if the information on the credit bureau was incorrect or there were some extenuating circumstances that justified the arrears? Perhaps a late payment or two was due to a loan co-signed for another and not being aware of the situation until it was too late. In all cases, there is normally some explanation that gets to the root of the problem. However, banks are more prone to decline the mortgage request and don’t take the extra effort to try and resolve the issue instead. We review a client’s credit bureau report from top to bottom so that there is no misunderstanding as to what is on their report, especially if there are any bruised credit issues.
We have helped many clients with their mortgage needs even after their no longer “much loved” bank said no. At what rate you ask? Well, sometimes a rate better than what their own bank had declined them with. That’s always nice when that happens! Granted, there are cases that require an Alt “A” lender (which promotes a slightly higher rate), or a private lender, when there are some bruised credit bureau issues, debt servicing concerns, or lack of income. It is our job to analyze the problem and match our clients with as many lenders as possible in order to get the best possible mortgage for their situation. What bank or mortgage specialist can do that? The answer is none!
If you are a realtor reading this and have experienced your share of frustration on too many lost deals that have gone sideways at the bank, and know that a pre-approval is no more than a “rate hold”, you may wish to encourage your clients to seek the expertise of a mortgage broker, preferably an Accredited Mortgage Professional with lots of experience, rather than take your chance with the bank or relying on one of the bank’s mortgage specialists. If you are, then we look forward to talking with you soon.
If you are the individual that has been declined and can’t quite understand what happened at the bank, you are not alone. We look forward to hearing your story and we promise to give you the time and attention you deserve. We will provide you with the answers you need to go forward and remedy your situation. If you are a first-time home-buyer, self employed, or looking to purchase a rental property, you need sound mortgage advice and the opportunity to more lending choices from an experienced mortgage broker. By the way, the cost of this service is absolutely free!