I received a call from one of my favourite realtors a few weeks ago asking if I could help her clients.
She told me the clients started with another broker but things didn’t seem to be going well. I told my realtor I would chat with her clients but would not compete with another broker. I know how much work goes into putting a file together and I won’t try to undercut another professional.
I did chat with the clients. Their broker had an approval in place and their closing date was less than three weeks away. They were getting extremely frustrated with the multiple requests for documents. They couldn’t understand why the broker kept coming back for more and more paperwork.
I asked a few questions about their particular situation then spelled out the list of documents I would typically ask for (specifically for their situation) upfront. They got very quiet.
It was almost exactly what their broker had asked for. In fact, the other broker also asked for all the documents upfront. The clients decided they would send bits and pieces based on what they felt like providing.
The other broker had the approval in place with a great lender and had a great package for the clients.
We discussed why lenders ask for the documents they do, and I told them they were actually slowing their broker down by not providing the information he needed right away.
I was entirely sure that they were happy with my thoughts but they did send the rest of the documents to their broker that same night. Their financing was signed off the following day. Problem solved.
The same realtor called last week with another set of clients who were struggling with their lender.
After listening to what was happening, I did end up working with these clients.
They shopped for the lowest rate online and reached out to one of the well-advertised discount brokerages. They had an accepted offer on their dream home.
The clock was ticking on their financing clause. I assumed they ended up working with a less experienced broker at the firm. They were told the incorrect amount for their minimum down payment, no discussion was had about closing costs, no documents were requested and they were told, in error, they would be exempt from the property transfer tax.
A week and a half of the time they had to line up their financing had already passed. They had four days left to finalize their financing. They are an amazing young couple who have worked hard to save their down payment and get their ducks in a row.
They sent me their documents within a day and we had an approval with all of the conditions signed off in two days.
There were two things to be learned from these situations:
1. When your mortgage person asks for specific documents, it makes the process go much smoother for you if you send what they’ve requested. Taking a few minutes to make sure your documents clearly show your name is important. Sending all pages of the documents key.
2. Work with a mortgage professional. Much like most other industries, there are mortgage providers with different levels of knowledge and experience, and different personalities. Working with someone from a smaller firm (compared to a high-volume discount brokerage) often means you will have someone who is far more attentive to your needs. It is wise to do your due diligence to make sure the person you are working with knows their stuff and is a good fit with you personality-wise.
Longer time in the industry does not necessarily mean more knowledge or experience. Some people who are newer to the industry take ongoing learning and work with mentors to offer their clients amazing service.
Buying a home is a huge investment and commitment. It is very challenging to qualify for a mortgage right now, so working hand-in-hand with your mortgage person will help the process go much smoother for you.
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.