May 11, 2016
Saskatoon Mortgage Broker: Tammy Wandzura: Why a PRE-approval from a Broker can be different than your bank
Looking to purchase a house?
Have you heard the term pre-qualifcation? OR preapproval
Do you know what the differences are?
How can a PRE-approval be different from a Mortgage Broker than the information your bank provides to you?
As a Mortgage Broker we are licensed and legislated both Federally & Provincially.
We are required to earn and carry licenses allowing us to work with our lenders and consumers relating to their mortgage approval needs.
We are regularly reviewed and audited to ensure we are working in the “consumers best interests”
For those of us that carry the “AMP” credential (Accredited Mortgage Professional); this means we are also required to carry on continuing education every year.
When you call my office to be “pre-approved” it is our job to collect information from you that the bank will need to provide you a full approval once you find the perfect home.
- We will take a full application
- We will review your credit bureau report
- this ensures your credit score falls within approval guidelines
- this ensures your debt vs income falls within approval guidelines
- this ensures the past credit you have has been in place for the length of time the lender and insurers require
- this ensures that any past credit issues can be dealt with (missed payments, unpaid collections, judgements, bankruptcies and so on) *sometimes there is information on the credit bureau that consumers don’t realize is reporting incorrectly and affecting their approval abilities negatively.
- We request the paperwork the lender will request when you find the perfect home
- This may include letters of employment, T4’s, paystubs, income tax documents, proof of down payment etc.
- This allows us to confirm the details closely to ensure the lender will accept the information as presented.
- We will go through the many options available with each lender (rate/term/pre-payment options/payment options etc)
This process is very fast and can be achieved in 24 hours or less so that you can start the exciting part…HOUSE HUNTING!
How is it possible to get such a speedy pre-approval?
We are experts in EVERYTHING related to mortgages
We know exactly what the banks will and will not allow
We ask all of the hard questions up front
This ensures that when you have found your dreamhome there are no surprises & we can submit the approval request to the lender and have a speedy response back.
- Your bank may update your information or simply use the information they have on file for you
- They may or may not pull your credit bureau report. Not often can they tell you what issues may be showing on your credit history as many lenders do not see the actual credit bureau. Instead their internal system takes the information and grades it within their own lending guidelines.
- They will ask you what your current income is- but rarely will dig to see if there are other determining factors that could severely affect the approval (Full time or part time? Employed or self employed? Newly self employed? Sole proprietor or Incorporated?? Casual working full time hours or permanent?)
- They may confirm source of downpayment if it happens to be in their accounts.
This may or may not be fast as you are required to make an appointment with your bank
It may seem”easier” to use the bank when they are not asking for important information upfront. The issue with that of course is the information will be requested at some point. The guidelines for mortgage approval are the same through any channel across Canada.
The information that you are provided from the bank is generally a summary and guideline as they are not reviewing the fine details that will be requested for final approval.
The personal banking officers at your branch are required to meet targets every month in regards to many divisions of day to day banking including Mortgages, Deposits (bank accounts & Investments) etc. The representative that you are working with with may not be experts in everything relating to your request.
The only training available to branches is internal & generally hands on and it is not the “norm” to have any additional training outside of the branch. Personal banking individuals are not required to complete any licensing or training requirements provincially or federally and are not individually legislated like Mortgage Broker. Many banks are also not allowed to have one on one training with the insurers (who are the ones that ultimately approve your request)
As your Mortgage Broker I am here to ensure your best interests are always taken care of
Quick and efficient service
Best mortgage options and choice
Best mortgage rates
There is NO COST to using a Mortgage Broker
Need more information?
Call me today at 306.933.3386
OR APPLY online and we will be in touch ASAP
Have a great day!
Tammy Wandzura, AMP