Work With The Right Brokers!

by Darrin DeRoches May 17 - 23, 2012

A new client of mine went into his bank and wanted to get a mortgage so that he could make an offer on a property immediately. He had found a property that he thought was perfect and he was raring to go. The bank had already “pre–approved” him so he was excited and ready to go. While at the bank, they came back with a little problem. The bank told him that he does not have enough money for closing costs and he cannot buy the house. Pissed off, he heads to the pub trying to figure out where he went wrong.     This is where I stepped in. A mutual acquaintance hears him complaining about the “closing costs” and suggest that he should talk to me. He calls me and tells me his troubles with the bank and his agent. Within 24 hours, I not only have him approved by a mortgage broker, I have convinced him to look at better areas and properties to invest in.     The agent he was working with suggested using a mortgage broker and gave him a list of three referrals, then left the client to figure it out on his own. He also told the client to buy a property in an area that is terrible for re–sale. The fact that the property was vacant and sitting on the market for a long time did not tip them off. The client can afford a property in his desired area that will have a great return on investment. The bank looked at his savings account and told him that he needed about $3,000 for closing costs and until he saved it up he was out of luck!     There were two simple problems for this new client to work out. First was to fire his bank and second was to fire his real estate agent. Within a five minute conversation, I realized that his agent was not asking the right questions and his bank did not know their ass from a hole in the ground. This client had more than three options available to him. First was the “no money down option” second was the “congenital mortgage” and third was the “line of credit and RRSP option”.      We met the next day with a mortgage broker who also gave him these three options and had him approved for more than he needs and at a great rate. The client had the best credit score I have seen in a long time; RRSP’s he can use to make up the closing costs and was a first time buyer which will qualify him for rebates on closing costs. The agent should have taken this client to a mortgage broker or been aware of the RRSP’s, credit score, first time buyer rebates and stepped in and called the bank to make them aware of their mistake. I met the client, had him approved and looking into possible dream properties – all within 24 hours. What was their left to do? With this great weather, we went golfing and within a week I am sure we will find him his dream home! V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.