September 04, 2016

Bossy banter: 101

SEP 04, 2016

“Oh God...you’re going to write about us in your blog, aren’t you?”


As a matter of fact, I am!


But, fear not, awesome artist, it won’t really be about you, it’ll be about MEEEEEEEEE and the inevitable bossy banter clients can expect to hear, regardless of who they are, where they’ve come from, or where they’re going. Because while everyone’s situation is unique, and every file takes on its own personality, there are some things that you can ALL count on me asking, telling, or insisting upon when we get the mortgage ball rolling.


(See? Bossy).
Psst...

To lighten the mortgage mood -
apparently I can be edgy in my delivery, *sigh* - remember to read this with
Tina Fey’s voice as Sarah Palin in mind because that’s how it sounds in my head. You’re welcome. : D

• HOW MUCH MONEY DO YOU HAVE? Please know your numbers (Income, Down payment) to the penny. $50,000 sounds great, but if in actual fact it’s only $46,500, that missing $3500 at the last second can make or break your qualifying power. Don’t fret, I’ll point you in the right direction.

• WHERE IS YOUR MONEY? Is it CASH, RRSPs, TFSAs, a GIFT, an INHERITANCE etc.? Is it in your name? Everything needs an explanation, on paper, and not all forms of money are alike. Best not to assume that you are allowed to use your RRSPs or a GIFT, you might learn too late that you’re out of luck. As well, avoid focussing on money you hope to make in the future. An exact breakdown of where your money is at right NOW will be the best way to help me help you.

• DON’T MOVE YOUR MONEY AROUND - Initially I wrote a long paragraph about why I don’t want you to move your money around (DOWN PAYMENT, RRSPs, GIFTS, INVESTMENTS etc.) until I give you the green light, but it’s that important, I’m going for the less is more approach and just sticking with: Don’t move your money around. xox, Me

HOW MUCH CAN YOU AFFORD? This is a tricky one at the very start of our conversation. I don’t expect you to know the first thing about mortgages but you’ll feel much more in charge if you have calculated how much you can afford for rent (mortgage +property taxes) and we can take it from there. I’ve been exactly where you are right now and will never encourage you to spend more than you can afford. Ask any of my clients. I’m a fiercely protective (and a bit scary) when it comes to your money.

DON’T GO HOUSE HUNTING, YET. Until I have all of the details of your finances, and we have decided upon your absolute maximum budget, don’t employ a real estate agent to go house hunting. I know, that ruins all of the fun (my job: party pooper extraordinaire) but your real estate agent will work 10x harder for you if you know your budget to the penny and are in a position to bid immediately. You’ll be happier, too. Also, it’s a courtesy to the real estate agent. They don’t get paid unless you are in a position to buy. That simple consideration will generate the good real estate karma that you really, really, really want.

DON’T LIST, IF IT DOESN’T EXIST. As artists, we live in the world of pending contracts, future gigs, and a lot of ifs and maybes. Unfortunately, unless you’re salaried, there are no future projections allowed on your file. All I can use to qualify you is what you have earned in the PAST two years, not the money that might be on the horizon. Pretty frustrating, right? But you know as well as I do how quickly a gig or contract can vanish for any number of reasons. Take it from me, you don’t want a mortgage based on the income you have yet to earn....amen.

HOW MUCH DEBT DO YOU HAVE? Nobody likes to talk about debt, but it is a necessary evil to a successful mortgage approval if you give me all the facts up front...psssst... it’ll show up on your credit bureau, regardless. No judgement, gang. I’m here to help. Full transparency is the best way to get you on the right path.

DO NOT TAKE ON NEW DEBT. If you are about to apply for a mortgage, please, PLEASE do not take on new debt during our qualifying process. Your new car, line of credit, or credit card will not help you. NOOOOOOOOO. First, your credit gets pulled (and lowered), and all the mortgage lender will see is the perfect reason not to give you money.

A PRE-APPROVAL IS NOT AN APPROVAL. Ok...*pause*... Go back and read that one over again: A pre-approval is NOT an approval. It is a RATE HOLD. That’s it. It holds the rate for you if, in fact, you are approved within the next 120 days at that particular lender. It is based on information that I put into the system, not info that I prove. It’s when we submit for an approval on a live deal (the house you just bid on) that we will have to PROVE everything. I’ll stop there because this particular topic could be a blog unto itself. Just don’t get too comfy with that piece of paper. It’s only the beginning....

PUT A 5 BUSINESS DAY FINANCING CLAUSE IN YOUR OFFER. This is a tricky one, especially in Toronto or Vancouver, because often it is a restriction the seller doesn’t want to deal with in a hot market. But, you take on a lot of risk (your deposit, namely) when you give up the time to prove your conditions (taxes, income, down payment, etc...). It’s up to you. I’ve only felt comfortable with one client waiving their conditions because they were salaried, had a LOT of cash for their down payment, and nothing unusual about their file. Even then, it was a risk, and I cannot legally guarantee anything. Self-employed folks, I’ll wrestle you to the ground if you try to sign off your 5-day financing clause before I give you the green light. (Yep, still bossy.)


I think that’s enough of my bossy banter, but you have to admit,
it’s much better using Tina Fey’s voice in your head. There’s more, MUCH more to discuss, and I’m sure my clients would even say,


“You forgot one.”

Ha! I probably did. I’m bossy, not perfect! : )

Thanks for reading, gang!

cardinalmortages.ca

note: all opinions expressed on this blog are
my own entirely, and do not express the opinions or
views of Mortgage Brokers City.