Two calls in a row this week have come in from borrowers that feel very frustrated with the lack of service being given to them from other lenders and other brokers. It would appear that the amount of financing they are seeking is too small for a corporate banker to review and too large or complicated for a bank branch to review. One client advised that they had a residential mortgage broker looking to get them financing and they had been waiting 4 months for an answer.
As a borrower it is important to understand what it is you are looking for. The easiest place to start is to determine what the loan to value of your request is. For example, if you are purchasing a property for $150,000 you should have at least $52,500 available for a down payment (or 35%). Banks and lenders may not actually require that much as a down payment however when talking to a bank or broker you should let them know how much you have and how much you are looking for. Then proceed to ask them about the last few deals they did and how much down payment or equity the borrower had to have. If you are simply looking for answers or direction be very specific about what you need.
Banks and brokers will tend to look at a deal and keep asking for paperwork until they know they have a deal. This happens because financing requests can be structured in a variety of ways to get the borrower what they need. Unfortunately banks and brokers don't always get the right information upfront and it can be very frustrating as a borrower to wait while they figure it out. Don't despair - just put time frames around your request so that you can move on to the next person if your needs are not met.
If you have a transaction you would like some direction on, please do not hesitate to email dylan@bridgecap.ca or visit www.bridgecap.ca/dylan
