Hi everyone it’s Aleem – Vancouver Mortgage Specialist. In today’s episode of our mortgage minutes
I want to share with you how I was able to help one of my realtor partners save his client’s deal from collapsing at the last minute.
This should be a lesson to all on the importance of getting pre-qualified by a Mortgage Professional. The realtor and the client had been working together for about 4 months to find the right fit. The client was on a tight budget and therefore the options were fairly limited.
The realtor inquired with the client about the mortgage, and whether or not the client had been pre-approved. A relative of the client happened to work at a major financial institution and was helping the client with the financing.
Two hours before subjects were to be removed, I received a call from the realtor, in panic mode, telling me that the client had been pre-approved by their bank but with two hours left in the subject removal period, they had received a call saying that the deal was turned down. Never mind the fact that the bank had 5 days to review and fully underwrite the deal and they are coming back at the 11th hour with a decline, but the reason for the decline was that the client didn’t fit the bank requirements!?!?!
There is a happy ending to this story of course. We were Lucky enough the realtor to get an extension for a day, the realtor worked his magic on that, and during this time I was able to find a suitable lender and we were able to help the client get into the home of their dreams.
Most realtors today insist that their clients get pre-approved before they start to look for places, which is a great idea, but the thing with pre-approvals today is that most lenders don’t actually review the details of the application until the deal goes “live”, i.e. until we have an accepted offer. This is the major difference between a pre-approval, and a pre-qualification. A pre-approval essentially, is not worth the paper that it is printed on.
A pre-qualification, on the other hand is far more reliable. As a Mortgage Professional, I do the pre-qualifying based on my experience and knowledge of the current guidelines. To ensure accuracy, all that I ask is for some of the required documents up front, such as the income and down payment verification.
Do yourself a favour and make sure you are getting pre-qualified. It will save you potential heartache down the line.
Mortgage Specialist Canada – Aleem Peermohamed.
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If you would like more information or a free consultation contact Aleem below, and as a Certified Mortgage Specialist let me help you get the home of your dreams. Great Mortgages, Made Simple
