Home Buyers Corner: Pre-Approved Financing
Chuck Barrington is a long time employee of BMO Bank of Montreal, and has worked with Roz for years. He will help customize a mortgage solution based on your individual needs and financial goals. He also knows a lot about new construction.
I have been hearing more and more Realtors complain these days about clients not obtaining financing once Purchase and Sale agreements are signed...this is unacceptable...
This information seems to be coming to light after a listing agent asks a selling agent if their client is "Pre-Approved" prior to writing an offer...it appears that some Mortgage Broker companies and banks are talking to potential clients about pre-approved mortgages, however they are not completing mortgage applications to the extent they should be.
What some of them do is take the clients information...and not obtain a "Credit Bureau" until the client actually presents a Purchase and Sale Agreement. I have to say I have never...ever been in this situation...If I have stated a client is pre-approved...then I have taken their information...received their income confirmation and identification and completed a credit bureau to ensure the only thing needed when a Purchase and Sale agreement is received is to approve the home...it's simple to say that this is normally automatic...
Make sure that you are dealing with an experienced mortgage specialist...one that actually gives a pre-approval that cannot be reversed once a home is found...this can be very embarrassing for all...the selling Realtor...the listing Realtor and of course the clients...not to mention all the work the Realtors have completed putting the deal together...
Can you imagine the way the current home owner feels after they thought their home had been sold only to find out the potential buyer did not qualify in the first place.