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 a wide variety of lenders gives a brokerage firm a distinct advantage over a single bank. Most major banks have very strict lending criteria. 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.
Another major reason banks decline clients relate to their credit. Banks rarely 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 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.
Banks can find more reasons to decline you than they can find to approve you. They are extremely reserved and new legislation is placing even more restrictions on chartered banks. A good broker will have upwards of 50+ lenders to work with and can circumvent indiscretions like hard to prove income and poor credit. If you are frustrated with your bank, credit union or current mortgage lender consider a broker that can give you the options you need so that you can get your approval.