With all the mortgage rules changes, stress test and tighter underwriting guidelines, now more than ever you need a mortgage broker on speed dial.
Based on my 19 years experience, I am seeing clients get declined from one lender and approved with another.
Working with many lenders, it helps to know the rules each lender has for qualification. What income they allow, any exceptions etc.
Having access offers more choice as well as access to better products that will meet your specific mortgage requirements.
Here are a few differences that distinguish one lender from another.
* I have a client with very tight debt servicing ratios which made it difficult to get approved. They had 3 children and were receiving Child Care Benefit.
Solution: I got an approval from a lender that accepts Child Care Benefit Income which brought their debt service ratios in line.
* I have clients looking to purchase a new primary residence and have decided to keep their current home as an investment property.
They went to their bank and the bank included only 50% of the rents they would collect to help them qualify. Unfortunetly, they were declined.
Solution: I placed these client with a lender that would allow 80% of the rents rather than 50% of the rents they would be collecting to help them qualify with their debt ratio’s.
* Self-employed clients often do not take out significant personal income from their businesses. This would be to avoid paying higher income taxes.
This means a number of business owners do not qualify for the purchase price they would like to buy.
Solution: I work with lenders that allow addbacks such as business use of home, Capital cost appreciation and amortization/appreciation.
* A client came to me looking to refinance his home to consolidate some high interest credit card debt into one low payment.
He went his bank and due to his credit card being $20.00 over his limit, it had dragged his credit score down to 660.
His current lender requires credit scores of 680 or higher for a refinance, thus he was declined.
Solution: I took my client to a lender that allows one to refinance with credit scores as low as 620. The best part is, his rate was lower than what his current bank offered him.
If one of these situations sounds like what you or someone you know is experiencing, then contact MortgageTailors today.
Let my 19 years of experience help you solve your situation. Call (780) 244-0505 or email email@example.com