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14 Aug



Posted by: Tracy Luciani Price


…Their new home. Like many others before them, Sam and Mel went to their bank to get pre-approved for a mortgage to buy a new house. The bank told them they were good to purchase for up to $350,000., quoted them a rate and they began their search for a new home.

They spent considerable time with their realtor looking at many homes over approximately two months and finally found one that matched their needs. Once the offer was accepted, they went back to their bank that, by the way, they had been customers with for over 15 years and knew the mortgage officer very well from a previous home purchase.  They submitted the offer of $349,000. and assumed they would receive a quick approval.

The bank did not respond for almost a week and they began to worry so they called to ask about the delay. To their horror, they were told that they had been declined for the mortgage. The reason stated was ‘Mel’s credit was unacceptable’. Apparently as a result of losing her job over two years ago, some of her credit card payments were missed and noted as R3’s, 60 days overdue.  The cards had been current for some time but the bank decided she was not credit worthy despite having a good mortgage repayment history with this bank. They were in shock and called their realtor with the bad news.

The realtor suggested they come to us. We got them approved within 24 hours and at a rate over one half per cent below the bank’s offer. They were fuming at the bank at the embarrassment caused them. Their realtor asked them initially if they had been pre-approved and they told her they had been.

You see folks, the banks actually do not do mortgage pre-approvals contrary to what most people think. What they do is a ‘prequalification’ which is simply a calculation based on income, and that’s it. There is no credit check.

Our pre-approvals are much more thorough and are based not just on ‘stated’ income but ‘proof’ of employment and income. We also review your credit history to make sure it is acceptable and act accordingly. We then proceed to book a mortgage through one of our over 40 lenders, assuring you of a mortgage and a guaranteed rate. When we give our pre-approval in writing, it is only conditional on one thing; the real estate being acceptable. You are fully protected, and there will be no nasty surprises.

When you buy your next home, make sure you call The Price Team/DLC for a mortgage pre-approval you can count on.