The Perils of a Pre-Approval
We had a client come through the office with a Chartered Bank "Pre-Approval" giving a rate hold and financial budget limit. To our complete shock when our deal was submitted it was denied. After a longer look at the document it said in fine print "subject to lending criteria". As it happens the representative from the lender evidently didn't read the file before issuing the document. We subsequently had to scramble and find alternative lending at a poorer rate... Heartbreaking and extremely stressful. Luckily we had a finance condition which allowed us to vet the mortgage before committing to a firm deal. In todays climate a finance condition is not usual as most properties are expecting over asking condition free offers. How can we protect our clients with this strategy?
Regional Manager, Ontario North-East & Atlantic at Mortgage Alliance
11 个月Thankfully you had a good outcome. Not all pre-approvals are created equal…no easy answer on the financing condition piece other than each client should conduct a thorough due diligence on their situation through a licensed mortgage broker/agent to mitigate any issues. Keep up the great work Steve, you are a genuine client advocate!!!!