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Saturday, October 6, 2012

What a mortgage agent does

Many times we hear the question: what is the difference between a mortgage agent and a bank employee taking an application? I would like to suggest what I see is the major difference between a bank and a mortgage agent. Anyone can help an excellent credit worthy client get a great mortgage and it is done quickly. We obtain mortgages from the big banks also. On the other hand some people have seen their credit rating slip usually through no fault of their own. Perhaps a husband or wife lost their job or a construction guy was injured on the job and money is stretched thin and maybe credit card payments are late or missed. EI helps but it is capped and temporary.There are many reasons. Banks don't want to deal with these clients. First Line had a "B" lender side as to Bank of Nova Scotia. They withdrew from this type of lending. This is where we play a critical role. We look for the companies that deal with these types. Many times it is a difficult process but if we get them a mortgage they save their home and can start to rebuild their credit. Certainly they will not get a 2.69% or 2.99% rate offered to them. Perhaps they have to pay a broker's fee also depending on how the lender compensates the agent. But the client keeps their home and most are quite happy. Most people say that it could never happen to them to be turned down by a bank. But it has happened to many over these past couple of years due to the economic turmoil. Self employed people trying to get a mortgage are sometimes put through hoops by banks. We know the lenders that will welcome self-employed applications, we usually know the documentation that will be required and we can get the job done quickly.