In the past few weeks I’ve had some (pleasant) surprises with files I’ve been working on.
When I accept new applications from clients, I ask for all of their documents in advance. Before I send them out shopping, I double-check everything to make sure I can get them a permit that they are happy with.
When I know I cannot get their ideal approval, I will offer options that I see based on their particular situation.
If they ask for a purchase price higher than I see they qualify for, I will let them know and suggest how we can potentially increase their creditworthiness.
Sometimes when I see that I currently can’t get approval, I let them know. When I know where to get a permit, I’ll refer you to someone I think can help.
For example, for RVs in parks, I send people to one of the local credit unions or a chartered bank.
I started working with a young couple about three weeks ago. You’re in northern BC so the price points are a little different.
Based on their income and loan payments, I agreed to have them shop for $ 200,000. They had a house in mind and it was $ 210,000.
They said they went to one of the chartered banks and the lender there told them he could absolutely get them as low as $ 210,000.
They took up an offer, paid for a home inspection, a water test, and had someone to inspect the sewage plant.
On the day the subject was removed, her banker came back and said he couldn’t really approve her file.
I hate when that happens. That’s why I’m so special in advance.
They came back to me to see if there was anything we could do.
I did some research and found a lender who would go to their area and ended up referring them to a lender who had a cash back program. By taking advantage of the cash back mortgage, we were able to access enough money to pay off one of their loans so the odds were consistent.
I’m not interested in the cash back programs for a number of reasons, but every now and then they are the fit customers need to be able to buy a home.
Another customer from the north wrote an offer for a house that spanned three different lots.
The first two lenders I approached wanted to support the client’s application but needed a new survey and second assessment as the purchase was a private sale (as opposed to an MLS listed property).
The fifth lender was fine with the property and we had a permit at a great price.
Sometimes when one lender says no, another may be open to approve your application.
If you’re struggling to get your funding in order, a second pair of eyes can be very helpful. If you’ve applied to your usual charter bank and they say no, it may be worth exploring your options.
There are many great mortgage professionals out there who might find a great solution for you.