Mortgage Approvals: Without One, This Girl Don’t Play

You know what sucks? Going through the entire process of house shopping, making an offer, negotiating back and forth, paying for an inspection, analyzing the inspection results, planning what needs to be done when you become owners, picturing where you’re going to put your furniture and what colour you will paint the baby’s room…and THEN finding out that the bank will not approve you for a mortgage to buy this house which has already become a home in your head and your heart.

You know what might be worse? Being the seller in this case, ready to move on, planning what next needs to be done to empty the house, emotionally detaching from this place that has been your home for years, shopping for and making an offer on your next one…and THEN finding out that this has all been for naught because the buyers don’t have the funds to buy the house.

So, for the love of all that is holy and unholy, buyers…and their real estate brokers…please please please understand – no, don’t simply understand – really, really internalize the fact that:

  1. When you need to provide an UNCONDITIONAL mortgage approval by a certain date, it had better not have ANY conditions attached to it. A mortgage approval with conditions is a conditional mortgage approval. That is not what you are required to provide.
  2. The dates in an offer are important, and when you say the unconditional mortgage approval will be provided by a certain date, if what you provide has conditions attached to it, you could lose the property. That’s right, there could be a back-up offer just waiting for you to make a false move and just like that, you could be bumped.
  3. When the bank asks you to provide certain documents, you best be providing those documents post-haste. I mean, you move hell and high water to get those documents to the bank. The lack of a scanner at home or your son’s swimming lessons are no excuse to slack on this.
  4. Just because you were approved for a higher mortgage a few years ago does not mean you will be approved for a mortgage now. Loads of things could have changed in your financial or employment situation…or even just one…and that may be enough to change the bank’s tolerance level.
  5. The banks are stricter than ever, people. I cannot stress this enough. All real estate brokers know this — and because of this, so do our seller clients. And so when you arrive at the negotiation table with your offer in hand, if you don’t have a valid pre-approval letter from the bank, we generally become skeptical. And that skepticism seeps into our negotiations. Show you’re serious, right from the get-go, by showing us that you’ve done your homework and are working intelligently.

3 Things You Can Do Right Now:

  1. Meet with a mortgage specialist – someone who does mortgages all day long – to get your pre-approval.
  2. Meet with a mortgage specialist – someone who does mortgages all day long – to get your pre-approval.
  3. Meet with a mortgage specialist – someone who does mortgages all day long – to get your pre-approval.
OK I’ll stop now. I think the message is clear.

If you want to stay with your bank, no problem…but I recommend speaking to the mortgage specialist affiliated with that bank. Why? Because I’ve seen too many files with unnecessary complications causing unnecessary stress to my clients, simply because the person handling their mortgage was not experienced — they only did the occasional mortgage, not all day every day.

I know mortgage specialists with every major bank and they are thorough, discreet, professional and knowledgeable…and they will come to you! Hit me up if you need a few contacts.

If you’d like to shop around a bit for the best mortgage product – and note that it is NOT all about the best interest rate – let me know as I work with excellent mortgage brokers as well.

I’m sorry if all of this sounds harsh…no actually, I’m not. I’m a bit of a mama bear when it comes to my clients, and I’ve seen too many people disappointed when the bank does not come through as everyone had hoped. I insist that we all do what must be done to avoid anyone’s dreams or plans from being quashed.

This girl don’t play.