Dear David,
We were pre-approved for a mortgage a few weeks ago, but when we put in an offer to purchase a home, our financing was declined. What happened? – Surprised

Dear Surprised,

The real estate market is changing, almost on a daily basis. In an environment such as this, mortgage and lending regulations are sometimes adjusted without notice. Unexpected changes to banking industry rules can certainly catch buyers off guard when they’ve gone through the pre-approval process and assume that their financing is a done deal. What you need to remember is that pre-approval is not a promise, but an educated prediction based on market conditions at the time. Your mortgage advisor can’t foresee what adjustments might befall the banking industry weeks or months down the road. The bank may hold your rate for 60-120 days, but because the rules can change, it’s always a good idea to have them review it again before purchasing. With this in mind, you’ll also want to avoid spending right to your max, in case there is a bit if a shift in rates.

In my experience, having an existing relationship with your lender can sometimes work in your favour. I certainly don’t have a crystal ball, but from what I have seen, clients seem less likely to experience a wrinkle when working with their own lender, as opposed to the 25-30 other lending institutions with whom they may not have previous relationship.

Dear David,
You talk about mobile mortgage advisors quite a bit. Are there mobile lawyers?

– Just Wondering

Dear Wondering,

Yes. Mobile real estate law is a welcome customer service development for those who might find travelling to a law office difficult or inconvenient. I recommend this option when serving clients who may be elderly, mobility-impaired or unable to attend an appointment during regular business hours. When using a mobile lawyer, there is generally one mobile signing appointment included in your legal fee, which means a representative will come to your location so that you may meet face-to-face, ask questions and sign the documents necessary to complete your real estate transaction.

While hours and travelling distances may vary by firm, these services are available almost anywhere in Ontario, though there may be additional fees in outlying areas.

For many people, these services can make the process of buying or selling more comfortable and convenient. If you are interested, I would be happy to refer you to someone I trust.