So as I said, go find a new broker. Do some research to find someone reputable with experience.
Mortgage Approval
- Thread starter goodboy97
- Start date
exactly, unfortunately brokers are either very stingy, and some ar every experienced some are crooks, and they hate doing pre approvals(cause it takes time). they rather push u to buy, and then set u up with a lender with huge fees or rates.
I don't know what kind of "broker" you have dealt with but you must not have done your research. An experienced and reputable broker is NONE of that.
Yes a lender will want to find out that you are currently employed. Whether they call or use other means is up to the agent.
My lender back then asked for employment letter. I got HR in my office to write that up for me. It's pretty standard. They could call your employer.
thats so bad that people force you to do a credit check without your consent and then use that to keep you there. actually one credit check does not decrease your credit that much, it depends what your current score is, when my clients are not sure to start a pre approval, i usually tell them to check online themselves to see what their credit score and report looks like since that does not affect your scoring if you look at it yourself.
majority of the banks have now access in their online banking to see your credit score , for banks usually 670+ is acceptable thought unless the score is less but because of newer credit or minor delinquency, time to time you can get an exception to that.
not every single time, i have been working for the bank 12 years, and i have seen all sorts of fraud attempts, 90% of the time, either employment letter looks suspicious, t4 2019 and paystubs dont match , or there are many inconsistencies, but i have seen pretty good attempts as well. if we have doubts we do call to verify.
i am going to say something here, if you are willing to produce falsified info, you should be ready for the consequences, a lot of times the broker is crook and assist the client (with a lot of cash fee) the make these, maybe somehow you get this mortgage, at one point in time that crook broker will get caught, and the bank will look at that person's deals they have done and went through all, don't be surprised one day the institution calling you to verify and give you a 30 day notice to find yourself another bank for your mortgage.
it happened and it will happen. i have seen a person who got a mortgage from a major bank and then 6 months later got a letter saying they have to find another institution in 30 days, you either will have to find a bank or small lender, as be ready for the exorbitant interest rates these places will offer. that person ended up being forced to sell his place.
my guess is same, its a rabbit hole people would go through just to get a mortgage. this happened i think 3 years ago, when B-lender was doing an internal review, they started seeing a very common theme with employer letter. and figure out some broker keeps supplying the same format of an employment letter, obviously it was fake. this company ended up ceasing any deal with 12 brokers. and word got on the street, this B-lender lost their investors who got scared, all of a sudden this company didnt have enough money to give for mortgages. they ended up getting a emergency Line of credit with 6% from somewhere else. then some bigshot investor came, stock price was 6 bucks went up to 21 , my guess is not investor american is gone selling by tripling his stocks. because the default rates are very low, people forgot about it. but my guess is a lot of mortgages which were done by those brokers went probably under investigation.
this is kind of what happened with fake spousal weddings in some countries, where these fraudsters were paying people who were having wedding to act like they are getting married. then it turns out some agent found out that the same people are presented as parents for different couples. 100s of people got denied.
Too be fair it is very hard to give advice without knowing your credit rating and I assumeyou were asking the broker questions about how much you would qualify for. I agree that they should have warned you but you also should have expected it if you were enquiring about how much of a mortgage you could get and at what rates.
nowadays almost all banks have free credit service(equifax or transunion), thats why when i see the client is not ready to commit, i tell them to check their credit history through their online banking or credit karma. for ex RBC online banking has access to transunion reports, since its under information act, it doesnt hurt looking at it. it has helped me a lot, especially when i see the score is borderline, we could keep an eye on the report with the client and apply at the right time so score is within acceptable range.
Yes I know I ask any potential tenants to submit their credit report that way. I would imagine some mortgage brokers or bank employees would feel that asking someone to look up their own credit score would look unprofessional or questionable. Clients may not necessarily understand why they are being asked to look up their own credit score.
it happened the other day, some client claiming another broker that he did not consent for the bureau but they still pulled. i think sometimes people do that to coerce the client to deal with you, because they feel with a credit check already done, clients think they are stuck with that person. so broker wins.
yeah the industry is made of up all kinds of people, sales and commission jobs do test people's ethics a lot.
