Many home owners and prospective home owners are unaware about what qualifies or disqualifies them from getting a mortgage. Consumers generally are of the opinion that this decision is completely up to a loan officer in some bank who has the unilateral power to decide if they are worthy enough. I have heard applicants express their fear of annoying the loan officer for fear that this will incite the loan officer to decline the loan

Nothing could be further from the truth. While the bank reserves the ultimate right to either approve or decline a loan, nowhere in their policy manual will “liking a client” be noted as a criteria for approval. Keep in mind that they need your business and as I have explained before, for each $100,000.00 you borrow over a 25 year term you will repay approximately $252,000.00. When you look at it this way, you will begin to realize that no one is doing you a favor by approving your mortgage loan.

However, there are factors which will legitimately cause your application to be denied. Some of them are as follows:

Excessive loans
Chronic borrowing
Poor repayment history on existing or past loans
Unstable job or job history
Poor character
Unacceptable collateral
Amount requested may be beyond your income’s ability to repay within the Central Banks guidelines (Debt Service ratio too high)

Here are some important points to consider:

Your marital status does not matter (single persons can be approved for a mortgage)
You do not need to have a prior relationship with a lender to be approved by them for a mortgage
You are UNABLE to get insurance coverage, YES you can still be approved for a mortgage in some instances
You can be approved if you are unmarried dating couple
Your age does not automatically disqualify if you earn enough to pay-off the mortgage within the prescribed term

Keep in mind that not all mortgage applications are equal, nor are all loan officers, banks or mortgage brokers. We have had loans approved at three out of the three lenders we referred it too. We have also had loans approved at only two lenders out of four. Ultimately, the art of mortgage APPROVAL is the strength of the associates at XM Loans.

If you remember the points above we can almost guarantee that we will get your mortgage approved. Go ahead, give us a try you’ll be happy you did.

From the President’s desk….

Are you kidding me?

Troy Sampson
Troy Sampson, President & CEO

That was the question which I asked a client who informed me that their application had not been decided on after three months at the lenders’. I inquired about whether all of the required documents were with the lender, and was informed that they were.

Several days later the client emailed me scanned copies of their documents and within 5 working days after I submitted it to my lenders they were approved.

Unless YOU demand more you will continue to be treated like an annoying relative instead of a customer. I can’t say it enough….no one is doing you a favor by approving your mortgage!

You met the criteria, your loan is approved and you pay interest like it was going out of style. So, unless you are comfortable with putting your down payment at risk, demand more. Let your mortgage broker “shop” your loan in the market for you. Get the best rates, terms and SERVICE available. With all of the interest that you will repay don’t you think you deserve at least that?

Your monthly mortgage tip:

Secrets Lenders don't want YOU to know!

Why is it that lenders require such a large inventory of your property as collateral for a mortgage loan? Simply put, it is because “they who have the gold make the rule”. Please do not misunderstand me, borrowers who have been advised of the need to pledge excess amounts of collateral always reserve the right to negotiate a reduced security package, but is this putting the approval at risk?

NO, not at all! As I have said before, borrowers ALWAYS have the right to negotiate, but in the game of negotiation if you don’t know the rules your chances of success are slim. Always remember, the lender is more interested in protecting the money loaned to you by holding onto as much of your assets as they can. If you or someone you know has a mortgage that is over collateralized please call us, we’ll be delighted to help.

To find out more about what is required for a mortgage, visit our web site at www.xmloans.com.

KNOW THE FACTS – IT’S NOT ONLY ABOUT THE APPROVAL; NEGOTIATE THE OFFER FROM THE LENDER!

1(242) 225-3873 or 1(800) 303-3934
www.xmloans.com

The material contained in this newsletter has been prepared by XM Loans Ltd. 404 Bay Street, PO Box N-4443, Nassau, Bahamas and independent feature contributors. The material provided is for informational and educational purposes only and should not be construed as investment, financial, real estate and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors.

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