Exasperated, Jillian called us saying her bank told her that she needed a co-signor to purchase after she and her husband Bob had put an offer on a home in Fergus. She told us she didn’t have anyone in her family who could co-sign and wanted to know if there was any way they could do it without one. Nothing is set in stone in the mortgage business. We asked Jillian to come in for a chat and discovered that she had been pre-approved at the bank which is why she went house hunting only to be later disappointed. Mortgage lenders usually ask for a co-signor when there is an issue with credit or income.
As it turned out Bob had barely acceptable credit and he had only been working as a plumber for 8 months. Most lenders like to have more job stability. The bank saw it as a ‘weak’ purchase transaction. Her employment and credit were strong and the property was fine.
We went to work and asked Bob about his job. He told us that he is highly regarded and his job is very secure. He also gets all the hours he wants. So we asked him to get a letter from his employer with their endorsement of him. Problem solved, we found a lender that was willing to do the mortgage at ‘best’ rate and terms.
This is a good example of our ability to structure deals creatively so they will work, and also to present a mortgage application in the most positive light. The bank’s are very restricted in their parameters and usually think inside the box. We also have over 40 lender’s to source, many of whom are more ‘common sense’. We have excellent relationships with them as well, and can get them to ‘bend’ a little when it makes sense to them.
Again as we have stated in past articles, unfortunately bank pre-approvals are not really approvals at all because they do not review credit or confirm employment/income. People go out and purchase only to be embarrassed when they are ultimately declined. With us we look carefully at credit, employment and incomes ensure there are no nasty surprises; only the property has to pass mustard when you buy. So our pre-approval certificates mean something you can count on.
If you get turned down at the bank, don’t be discouraged. Come to us, in fact why not forget the banks and just call us first?