Time and time again homebuyers get caught unawares on what is required to get financing for a mortgage. Suffice it to say that deals are still crashing because buyers and their real estate agents simply do not have all ducks in a neat little row before making an offer on a home. The mythology around financing persists like a years long pandemic! (Ahem.)
Where are folks going wrong?
The wrong turn happens at the moment of assumption. That is, homebuyers assume that banks will happily fork over hundreds of thousands of dollars as long as:
- They have been at the same bank for years.
- They have a big down payment.
- They have no stains on their credit history.
- They have a good job.
- They own multiple properties.
Would you believe that ALL of the above are not enough to secure financing for a mortgage? Nope. The lender needs to run your finances through various calculations to determine your ability to carry those monthly payments, without default, for possibly many years. And to do that, they will want to verify said finances by way of every financial document known to mankind. In short, the bank takes the position that they owe you no favours and you owe them plenty… because after all, if you were made of money you wouldn’t need a mortgage in the first place 😉
Watch my video below. This is an exasperating topic that needs to be talked about, often and upfront, with every single person buying a home. (Unless of course, you really are made of piles of cash.) Contact me directly to discuss a plan to help you secure your next home, without financing issues!