To get things started, I wanted to thank Kelsey G for sending through this picture of a riveting scrabble board that was inspired by my last weekend update in late November. Thanks Kelsey, you made my day!
Kelsey became a subscriber after her parents forwarded my blog to her.
I always love all the great feedback I receive. Keep it coming. Let me know what you think by just replying, and please forward my blog onto friends and family.
it’s time to get back to work. I have a lot of content that has piled up over the last month since my last weekend update, so I’ll be posting a bit more over the next while.
Now, for those that unsubscribe with the reasoning “I get too many emails from you”, I just don’t buy it. I send out once every three weeks or so, maybe bi-weekly at the most. Weekly is very rare. Unlike a plethora of other companies which basically send daily or twice daily, my send-outs are not overly frequent. Just saying.
Here’s something you aren’t going to hear from most mortgage brokers out there. Sometimes, shopping your mortgage through multiple options could work in your favour. Even if it’s with your bank (sometimes). Anyways, read through for context.
Let me setup the situation. A new client approached us for some financing on an upcoming purchase. We were referred by a realtor who sends her clients to us, because, well, she trusts us to get things done and treat her clients right. (Thanks M!)
Anyways, the situation was pretty complicated. It involved leveraging one or possibly two existing properties that the client owns in order to make a third purchase work. This is really the kind of situation where the junior person at the bank just drops the ball. Too confusing, too much work, and can’t think the situation through.
I had several calls with the client to talk about strategy and numbers. She mentioned she was also shopping the deal with her bank, and while I don’t really like to hear this, I can’t deny that it’s a bad strategy. I told the client that I thought we would provide better service and get things done quicker, and possibly with better rates. She started the process with us.
A complicated deal to say the least. There are businesses involved, non-subject properties to collect documents for, making this file very document heavy.
Side note, Darla and I do not shy away from putting complicated files together. That’s where we excel. Darla is an organizational whiz, and I’m pretty good at figuring out mortgage strategy (OK, I’m trying to be modest here).
Ultimately, my strategy was to take the purchase mortgage to 65% LTV (loan amount to purchase value). For example, if the purchase price is $1,000,000, the mortgage would be $650,000, giving us 65% LTV. Us experienced brokers know that 65% LTV is generally the threshold that lenders will go to on non-debt servicing files, and this was one of them, despite the clients having a very high income. In fact, most large files don’t debt service, given the stress test and higher interest rates.
Anyways, as the purchase was going to max out at 65% LTV, we needed to borrow another 20% or so against one of the other properties, to complete the purchase. The client was throwing in the other 15% from their own savings.
The client is happy with my strategy so far and we keep on going. Of course, my lender, being new to the scenario, had lots of questions. Questions about their business mostly, and how income was being derived. Lots of questions to answer and lots of documents.
After having a call with the client going over the questions, things go silent for a day or so. When there are deadlines involved, there are usually no silent days, so I know exactly what this means. The client may have grown fatigued by all the questions we had and all documents we asked for. I get it.
The next day, the client calls me and graciously tells me that her bank, where they do their personal and business banking, came back with an option to go 75% LTV on the purchase, and with less documentation requirements.
I couldn’t deny it. This was a better option for the client. More money offered on the purchase, lessening their need to borrow against their other properties. Also, less documents required. All in all, most likely the better option for the client. I thanked the client for giving us a chance, and stepped aside, telling her to stay in touch and let me know that if things do fall through with the bank, that we are standing by and ready to make things work.
I don’t get beat on a lot of situations, barely any in fact. But here, I knew I was beat, so I was totally OK to step aside.
The silver lining? The client left us a great google review, and even gave myself and Darla a very lovely gift. Sure, of course I would have preferred to win the file, but you have to find the silver linings in these kinds of situations.
A heartfelt thank you to the realtor who referred us, and a heartfelt thank you to the client for being gracious and kind.
In this situation, shopping with her existing bank was the right thing to do.
Our service is better, 100% of the time. Our rates are better, most of the time. Our strategy is better, period. We don’t drop the ball. We’re organized, professional, and we know what we’re doing. We’re experienced and ready to help you and support you through your very important mortgage financing process.
So yeah, I still think we’re better than the banks, and everyday I’m going to make sure that my clients and my referral sources know it.
Call or email me anytime to get that strategy working for you. Even if you just want me to help you make sure that your bank is doing right by you, I’ll give you my opinion, and my time to ensure your being taken care of.
Even if I don’t win the business, I’ll have helped out, and maybe earned one more glowing google review.
Your Feedback Is Appreciated, and of course, I’m always available for any mortgage questions you have.
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