You've done a #preapproval with your bank/mortgage agent. You're in good standing. You make an offer on home. Not just any home...YOUR #dreamhome. It's perfect. It's everything you dreamed of. You are already moved in and raising your family, or sending your oldest away to college from the end of the driveway...in your daydreams anyways.
You start the process for a final approval on your #mortgage. Your bank/mortgage agent sends off for approval. Approval back! Celebration time! Right? Not yet. You need to provide your documents. No problem; you send in your paystub, your Letter of Employment, your bank account statement showing your down payment and wait to hear back.
Tick, tick, tick....The clock is counting down towards your Condition of Financing.
Your mortgage agent calls you back and says the income you provided him and your Letter of Employment don't match. The lender is wondering why? It's a simple explanation, you counted your overtime. But you work LOTS of overtime, that doesn't matter does it? Uh-oh, the first domino has fallen and the rest are teetering.
Now you need to provide two years of Notice of Assessments and two years T4's to prove the amount of income you provided. No problem, you've been at this job for "over 2 years", right? Well...not really, your start date is actually only 23 months ago. You "rounded up" because the actual YEAR was 2 years ago...just not the anniversary date. Now the lender wants to know why your application didn't have accurate dates? Uh-oh, domino number two...
Without two years tax returns at this job and no two year average of overtime, your income requires an exception from the lender and the insurer. Your agent needs to resubmit. Tick, tick, tick....The clock is still counting down.
The lender and the insurer are now on high alert because of discrepancies provided by you and your bank/mortgage agent. They want more extensive proof of down payment. You print out another 3 months of statements and send them in. Oh? What's this $10000 deposit? Nothing really, you had lent a friend some cash last year and he paid you back. Uh-oh, third domino comes tumbling down. All deposits of $10 000 and over, (some lenders have a lower threshold) need to be explained and tracked, via FINTRAC. Without proof of what this money is the lender and the insurer will not move forward. Your friend is in Jamaica for 2 weeks. ALL the dominos come tumbling down as you reach your Condition of Financing and the seller will not extend because they've had another offer.
Now you are no longer daydreaming of your perfect home. You are suffering from a case of domino depression. You are grieving because another family is going to send their child off to college as they stand at the end of your perfect driveway.
There are other homes, you will find another, of this I am sure. What I am also sure of is that had your mortgage "preapproval" been done right the first time, you would never have had this emotional rollercoaster. Moral of the story is deal with professionals, deal with a mortgage broker...more specifically, THIS #mortgagebroker. My processes will prevent you, and your #realtor, from suffering domino depression.