When working with Buyers, it is truly important that they be pre-approved for a mortgage before their search for a home begins. Having a pre-approved mortgage amount makes the search for a new home much easier and less time-consuming because you will have a price range in mind during the shopping process. We have mortgage professionals on our team that we refer from time to time, however - what are some of the challenges that come up when a Buyer is working with their own bank or mortgage broker?
A few months ago we came across a hiccup in one such situation. We received a referral for a young couple who were looking to buy their first home. At our original appointment, we asked if they had been pre-approved - they assured us that yes they were subject to certain conditions with their own mortgage broker. We proceeded to work with the Buyers, taking them out to see homes and found a property that they wanted to call home. During the conditional period after acceptance of the offer, we received a call from our clients who were in a panic - their mortgage broker would not give them their financing due to the location and certain features of the property.
Under time constraints, we put them in touch with our in-house mortgage broker who was able to get them their financing with an A-Lender (within 24 hours), and also saved them about $8,000 in extra fees that they were paying to their original mortgage broker who had placed them with a B-Lender. Needless to say, we had some very happy clients on our hands.
In closing, a little caution in reading the fine print and understanding conditions goes a long way. We are here from start to finish so let us be part of your team.