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Posts Tagged ‘mortgage arrears’

How Can a Mortgage Broker get me approved when my Bank has Declined Me?  I get this question a lot and it is a very good one.  Having access to over 60 lenders gives a brokerage firm a distinct advantage over a single bank.  Most major banks have very strict lending criteria and each lending institution has a different set of lending rules.  While you may not qualify with your own bank, you may qualify easily with a major competitor.  For the average individual this makes applying for a mortgage product very difficult because you can’t be sure which bank will qualify you and you have no guarantee you are getting the best rate.  This is where an experienced mortgage broker can make all the difference.  They already have knowledge of which bank’s criteria you will meet, which banks you won’t and who is offering the best rates.

In addition to having a wide variety of product knowledge a good mortgage broker can deal with a variety of adverse situations.  Major Banks can decline clients for a variety of reasons.  The inability to prove your income is one of the major reasons bank can decline you.  If you are self-employed or have non-traditional income such as commissions, tips or even work for cash you will find it very difficult to get mortgage financing.  At Community Mortgage Services Corp we are equipped to place the most difficult mortgages and have a number of lenders who will offer rates that are competitive, in some instances better than your bank and we have access to lenders that do not take issue with hard to prove income.

Another major reason a bank might decline you where a mortgage broker will get you approved pertains to a questionable credit history.  Major Banking institutions lend almost exclusively on what is called a “beacon score”.  This score determines what your current credit status is.   Banks do not consider what you have done in the past to maintain your credit rating nor do they take in to account circumstances that may have caused you to allow your credit rating to falter.  I often hear stories about clients who have never missed a mortgage payment or credit card payment for 20 years and as a result of misfortune find themselves sick or out of work and their bank won’t help them.  It is appalling to think that a bank that anyone has dealt with for this long would turn their back on them in a time of need but it happens regularly!  For mortgage brokers credit certainly has some bearing on getting clients approved but it is much less of a factor.  With access to a wide number of lenders, a mortgage broker can usually find a lender for every set of circumstances.  Even clients who have previously gone bankrupt or are behind in their payments be it credit card, loans or lines of credit are eligible for mortgage financing.  You just have to deal with an experienced broker that can match you up with a lender that will qualify you based on your set of personal circumstances.

Being able to supply a bank with all of the pertinent paperwork they require can be daunting and often not even realistic.  Banks can require notices of assessment, current mortgage statements, property tax bills and paystubs.  This sounds simple in theory but what if you have not filed your taxes yet, your mortgage or property taxes are behind?  Community Mortgage Services Corp has well established relationships with a multitude of mortgage lenders who lend with common sense, are not document driven and will make exceptions of it is logical to do so.   For example, if you have never missed a mortgage payment in 5 years but missed the last two because you were temporarily off work there are a number of lenders that will take this into consideration even if your bank will not.

So, rather than wasting your time being declined by the bank or not getting what you deserve, consult an experienced mortgage broker who can not only ensure that you get approved but that you get a mortgage with the best terms, rates and that offers flexibility.  Call toll-free today 1-866-668-6570 to speak to a mortgage expert!