Honesty best policy

Finding the right mortgage broker is important.

Whether you choose to work with a mortgage broker, a branch employee, or a mortgage specialist tied to one  bank, working with someone who helps you to feel comfortable with the process and knows what they’re doing is key.

Being honest and upfront with your mortgage person is equally as important.

Last week, I had a series of back and forth emails with a couple.

They wanted very specific answers, but would only provide the barest of information for me to work with. They told me they are looking to purchase a home in the $900,000 range.

I replied several times, always qualifying my answers that I needed to understand the whole picture before I was comfortable going into more detail.

Inside voice: I was fully aware that the clients were either shopping or researching before committing to working with me.

We set up a time to chat that confirmed they were having similar conversations with other mortgage providers.

Essentially, they were looking for someone who would tell them what they wanted to hear.

Taking their application over the phone and running quick calculations showed that they did not qualify to borrow anywhere near what they needed to buy the home.

They had apparently been talking to various people over the course of a few months, but never sitting down to provide all of their information. Their branch had pre-approved them to buy the $900,000 home.

When the rubber hit the road and they had an offer on a home, the bank declined their application.

When I dug a little deeper, it turned out that they hadn’t disclosed a child-support payment she had to make to her ex-husband, or a vehicle loan he had co-signed for his daughter.

The loan payment showed up on his credit report, and the child-support payment came to light the same way (arrears where Family Maintenance Enforcement Program has put a comment on her report).

The clients had been adamant that they didn’t want anyone to touch their credit report until they had an offer in play because they were confident it was squeaky clean.

Their bank offers a free app that shows them their credit score all the time. Their scores were 734 and 756 respectively.

When their bank person pulled their credit reports and the additional debts came to light, it was game over for their approval.

So now the clients have an accepted offer on a home, and the people they are buying from have written an offer on another home.

There are a minimum of four realtors, three families, two home inspectors, and multiple other professionals who are investing time into making these purchases come together.

The clients are madly scrambling to find financing as they have fallen in love with this home and have given their landlord notice that they are moving (that’s for another conversation).

I am very particular about getting a complete picture before I give clients the all-clear to go write an offer.

If clients prefer, I wait to pull their credit history. I understand as it can sometimes take over a month to find a suitable property. When we submit applications for approval the credit bureaus need to be less than thirty days old.

I clearly and carefully explain that any mortgage pre-approval I do (if I don’t review their credit) is subject to a satisfactory credit bureau.

I will ask the clients to pull their credit reports and send me a copy so I can have a quick look. Over the years I’ve had several unpleasant surprises and don’t like having to navigate issues after the fact.

I’d rather know what we are working with up front so we plan accordingly.

I am hoping we will be able to find a solution for these clients but can not say with certainty that we can.

Buying a home can be an interesting ride. Regardless of how much homework you’ve done and how prepared you are, there will be moments of stress and anxiety along the way.

Knowing what you can afford, and working with a professional who does their due diligence from the beginning , can help make the process smoother – and most importantly successful.

Hope you enjoyed the gorgeous weekend. Perfect weather for house hunting!


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About the Author

Tracy Head and Laurie Baird help busy families find mortgage solutions. Together they have more than 45 years of experience in the mortgage industry.

With today’s increasingly complicated mortgage rules, Tracy and Laurie spend time getting to know the people they work with and help them to better understand the mortgage process. They support their clients before, during, and after their mortgage is in place.

Tracy and Laurie work closely with their clients, offering advice and options. With access to more than 40 different lenders, Tracy and Laurie are able to assist with residential, commercial, and reverse mortgages in order to match the needs of their clients with the right mortgage package.

They work closely with their clients to find the right fit, and are around to provide support for years down the road!

Contact them at 250-862-1806 or visit http://www.okanaganmortgages.com

Visit their blog at https://www.okanaganmortgages.com/blog


The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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