I couldn’t help but post this article i wrote AGAIN, in hopes that it keeps catching the attention of consumers when shopping for a mortgage or refinancing an existing one. I continually have clients coming to me that have been to their bank already, looking for financing for a new mortgage or refinancing an existing one they have. Consumers normally feel an obligation to go to their bank, and give them the right of first opportunity to arrange financing for their mortgage. To much of their surprise the banks seems slightly dis-interested in helping them, tell them that “we might” be able to provide you with financing and offer them a higher rate, or simply tell them they are pre-approved, having never even checked there credit first . Leaving clients unsure whether they are truly approved or not?
Remember people, banks don’t specialize in mortgages or one specific product, they have a line up of products including chequeing accounts, investments, RRSP, unsecured line of credits, mortgages and the list goes on….
My job when going threw the pre-approval process, is always taking a full application, which involves checking my clients credit. Checking your credit is an important parts of the pre-approval process as it will tell a number of different things, credit score, spending habits, if the debt outstanding is paid on time, how long have you have had credit and what debt is outstanding. Both you and I want no surprises when it comes to financing your mortgage.
You will also find banks also don’t always offer you the lowest rate on your mortgage. That’s right, you may be led to believe that because you are a current customer of theirs, with good credit (if they’ve check it), and job stability, that you automatically will receive the best rate, well think again. Banks “choose” who they give their preferred rates too.