Question from caller: “My purchase is closing is next week, and I need a mortgage from a mortgage broker urgently because the bank did not follow through. Can you help?”
This might just be the most important blog I will ever write… for a few reasons:
- Buyers need to know the truth about why their deal did not go through (a simple “no, sorry” is not enough)
- Buyers also need to realize that they were likely misinformed/possibly mislead before committing to their purchase (How did this happen?)
- Buyers need to put their trust in a mortgage broker with a high reputation and tons of industry experience (Could this have been avoided?)
Numbers do not lie. It’s one thing to be told that your numbers are tight… but to be told that the numbers are out of wack “but don’t worry…” well, this is a red flag. At the end of the day, your money is your money, so please don’t let someone else gamble it. The way to avoid this is to speak with a mortgage broker who has years of industry experience, or with any agent at a brokerage who takes pride in educating their clients. As a reputable mortgage broker with over 30 years, you’ll get nothing but honest responses from us. Lately (given new mortgage rules and regulations), we’ve been getting last minute calls of panic for closings that fell apart for reasons such as:
- Unverifiable income (cash only jobs, bank statements will very little income cycling)
- Discrepancies between what was stated as income vs. what is earned in actuality
- Debt servicing ratios that are far from aligning due to ‘over-purchasing’
- Additional properties owned but not declared during application process
- Lack of tenure with BFS income
- Lack of down payment for closing (due to credit scores or debt ratios)
- High debt utilization
There are many more, but here’ the kicker… every one of these scenarios could have been avoided by the right guidance from a mortgage broker. There is also a common trend among these calls that we’ve received… people were misinformed or did not consult an experienced mortgage broker BEFORE financially committing to a purchase. In many cases, buyers are misinformed by the bank specialists because these specialist (who wear many hats) do not take the time necessary to fully understand the client. There is a difference between understanding the products available (and there are many!) vs. bending the rules. Understanding the products means that we as a mortgage broker can use process of elimination to find products that are accepting of your scenario. In most cases, if your application does not fit traditional lending programs, well there are additional programs available through banks and alternative lenders (there is no ‘one size fits all’ approach to mortgage lending). Bending the rules means trying to force a scenario to work under a product not intended for that scenario… and crossing your fingers while hoping it passes.
We don’t bend rules, because we’re too experienced and aware. Instead, we find alternative routes which lead to the same destination (sorry to toot our own horns).
Let’s get things right the first time… together. Call us at (905) 455-5005.