YORK REGION MORTGAGE BROKER, SARAH COLUCCI, 20 YEARS OF EXPERIENCE HELPING HOMEOWNERS!
  • HOME
  • CONTACT US
  • PRIME RATE CANADA
  • MORTGAGE NEWS

Welcome to Our Smart Mortgage Blog

​Navigating mortgage financing can be daunting, but with the right strategy, it's manageable. This blog offers expert advice and insights on understanding interest rates and leveraging market trends for smart real estate investments. Whether you're a first-time buyer or a seasoned investor, "Our Smart Mortgage Blog" will provide the tools to make informed decisions and achieve your homeownership goals. Let's dive in and secure the best outcomes together.

Can Shopping For A Mortgage Hurt Your Chances of Being Approved?: Sometimes, it can.

12/30/2019

0 Comments

 
Picture
Shopping around for the best mortgage rate and product can be an excellent exercise to save you money, but it can also affect your chances of being approved. 

Although some mortgage brokerages have access to a few more lenders than others, for the most part, most mortgage brokerages all use the same twenty-plus mortgage lenders, which include some major banks, credit unions and non-banks.

If you are rate shopping or looking for the best mortgage product, you may consult a few brokerages and major banks directly. You may even approach credit unions, too. 

In the end, you may end up getting the best rate and product, but you may also meet difficulties depending on your financial situation and how mortgage lenders and insurers view your application.

Here's what you need to know.​

If you're applying through many different mortgage channels at the same time, you are at increased risk of your application getting sent multiple times to the same lender or insurer by different brokers or banks you've been 'shopping.' Applying this many times with the same lender through different channels can create confusion and ultimately lead to the decline of your mortgage application.

High-risk mortgage applications must get approved by both mortgage lenders and one of the three high-risk insurance companies. If a lender want to approve your application and the insurance company declines to insure it, your application still gets declined. 

Although most high-ratio mortgage files that are approved by mortgage lenders get approved by one of the insurance companies, some applications will get declined by the insurers regardless of whether or not the lender wants to approve it. 

For example, some borrowers don't have the best credit history, but their current credit score still falls within acceptable insurable parameters. They may have a history of delinquencies or a unique income situation that needs to be explained or rationalized by the lender to the insurer. 

When applying, in addition to your credit score, income and down payment information, a lender heavily relies on broker or bank specialist comments about your file. In the case of having credit issues, the professional you use must tell a truthful story about why there are hiccups in your credit. Communication and writing skills are essential and should influence your choice about whom to work with for mortgage financing. 

Sometimes, the 'story' is sufficient and acceptable to both the lender and the insurer, but other times it's not, and ultimately leads to a decline.  

Therefore, if you apply with many different channels, the application process can become complicated because a new, reworded story gets sent to a new or the same lender but ultimately, reaches the same insurers, which creates unnecessary "red flags" and can evoke an automatic decline or jeopardize a previous approval.  

Does this only apply to high-ratio mortgages and insurance companies?

No. 


Even if you don't need high ratio mortgage insurance because you have a down payment of 20 percent or more, you may still find yourself at an increased risk of the same fate if you shop many different mortgage brokerages at the same time.

All brokers write up their specific "notes" about the file and provide credit score, income, and down payment information in an application to lenders. 

Regardless of whether or not a lender declines or approves your application, you may become compelled to still apply with other brokerages. If declined, you may want to try and get approved by making sure you "leave no stone unturned." If approved, you may still want to determine whether or not you can find a better rate or mortgage product. 

Whatever the reason, if you continue to apply with different brokerages, you are at an increased risk of having your application sent to the same lender who initially declined it.  Unfortunately, most brokerages are not in the habit of advising borrowers of lenders they have applied with, which often makes it impossible for new brokers to know which lender has already reviewed the application. 

Therefore, to avoid experiencing a situation that can harm your chances of getting approved for mortgage financing or even reversing a previously favourable decision, it's imperative to work with people whom you trust and have thoroughly vetted for efficiency, reliability and tenure in the industry, instead of shopping around unnecessarily.

Also, if you must shop around and shop multiple brokerages at the same time, be sure to ask your previous mortgage brokerage which lenders have already reviewed your application. 

The mortgage process can feel overwhelming and become confusing, which is all the more reason mortgage brokers and banking specialists should lift the burden of finding the right mortgage off your shoulders and work with you to increase your chances of finding the best rate and mortgage product. 


Have mortgage questions?

Feel free to WhatsApp me at (647) 773-4849 or visit www.coluccimortgages.com
​

Sarah A. Colucci, Sr. Mortgage Agent Lic. M14000929, Mortgage Edge Broker 10680

RSS Feed

0 Comments



Leave a Reply.

    Picture

    By: Sarah Colucci

    Senior Mortgage Agent, Level 2, Lic. M14000929, 
    Sherwood Mortgage Group, Broker 12176, 
    Direct: (647) 773-4849

    RSS Feed

    Archives

    September 2024
    August 2024
    July 2024
    March 2024
    February 2024
    November 2023
    October 2023
    September 2023
    July 2023
    June 2023
    April 2023
    January 2023
    October 2022
    September 2022
    July 2022
    June 2022
    May 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    August 2021
    July 2021
    June 2021
    May 2021
    February 2021
    December 2020
    November 2020
    October 2020
    September 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    February 2019
    January 2019
    December 2018
    August 2018
    May 2018
    April 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017

    Categories

    All

    RSS Feed

GET IN TOUCH WITH SARAH

Let's get started today.



Address

411 Queen St. 
Newmarket, ON
​L3Y 2G9

Sarah A. Colucci, Mortgage Agent Lic. M14000929
Sherwood Mortgage Group
Licence # 12176

Telephone

Direct: 647-773-4849
​
Email: [email protected]
Picture
Photos from DFID - UK Department for International Development, wuestenigel, Free For Commercial Use (FFC)
  • HOME
  • CONTACT US
  • PRIME RATE CANADA
  • MORTGAGE NEWS