Here is an excerpt from a major bank in Canada that sent a message to brokers today (keep in mind that today is October 18)
“we…currently working on deals that were submitted on Friday October 11…please set proper expectations with your clients and referral resources…”
There is much more to the message but you get the idea. This bank is only looking at requests they received October 11 and are running a week behind. Why is this important?
Many clients (and people in general) can be guilty of procrastination by leaving things until the last moment. When you are looking for a mortgage or loan the LAST thing you want to do is wait until the last minute. As you can see, banks and lenders get behind in their workload which can have a significant impact on your situation. So how do you avoid this:
1. Create a timeline by working backwards from your deadline and figure out what needs to happen
2. Get help from people that will be a champion for your request
3. Establish a back-up plan in the event that unforeseen circumstances ruin your timeline
In addition to stress, anxiety and worry not planning properly for your mortgage or loan can also be expensive. How? You may end up having to pay interest or fees for interim solutions which can be costly. I am working on a deal right now where a business owner is purchasing another business and the bank he was working with let him know at the last moment that they were going to need a few more weeks to complete their file. This has resulted in our client using bridge financing to close on the purchase of the new business which will be repaid in a few weeks by the loan that the bank is providing. He is bearing the cost in the form of interest and fees for the bank running behind.
“Nothing is as far away as one minute ago.” -Jim Bishop
Get prepared for your next mortgage or loan.
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