Bank Declined, Broker Approved

THE PROBLEM:

We recently had a client that visited our office in December of 2011 that was declined by a local bank here in Steinbach.

The client was frustrated and came into our office looking for alternative options. We were able to sit down with the client and find that the client had a strong down payment, excellent credit history, however the income proof was a little unusual since there was a portion of the income that was coming from self employment and some coming from T4`d employment and neither had been in place a for more than a 2 year period of time. The branch turned away the client not because the application did not work at the branch, but because the particular person the client saw normally does not do mortgages, and this particular bank rep was not knowledgeable about the uniqueness of the self employed program and exceptions that can be made to the program.

 THE SOLUTION:

Since a portion of the income was coming from self employment, we were able to do the application under the stated income for self employed where we used a reasonable and rational income that would be possible to earn consistantly if the employment status changed down the road. Because the self employment was less than 2 years, we were able to get an exception to the policy and got the approval in place. The client was able to get 3.39% on a 5 year fixed rate over a 30 year amortization for a total monthly payment of $656.00. THE KICKER: We were able to get the client approved at the same branch she was originally declined at and got her a better interest rate than what was originally offered.

If you know of anyone that has been turned away at a financial institution for any reason, it never hurts to call us get a free second opinion. If you are not confident that the person across the table has tried everything or has explained why it cannot work, you may fall victim to failure not because your application does not work, but because the person you see does not have all the information in front of them.

ALL WE FOCUS ON IS MORTGAGES, if you are motivated to get a mortgage, we are motivated to make it work for you. If we have to say `no`, we will explain how it can be a yes at some point.

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