Whats up guys. I know a buyer that is facing a snag. They are a couple that have been here on a working visa for a long time. They are in the process of getting permanent residency at the moment with their interviews coming up in the next few weeks. They went to a lender who told them that their down payment would be higher but that their residency would not be a problem and they were in good standing debt wise. They owe little to no debt, and credit is good enough for loans. They were denied saying that its because they had too many obligations and not enough income. on paper the denial letter did not mention their residency status but on the phone when they called the lender said that that was the issue for them. What the heck am I missing here? What are the rules of mortgages for people with certain residency statuses? how does a person with little debt get denied?
@Alex Jean Baptiste The "too many obligations" response sounds odd, unless there is substantial debt you don't know about.
It could be that even though they have no debt, their credit history isn't deep enough. More of a "no credit" that a "bad credit" situation.
I've seen that more times than I can count.
A good lender will give them advice on establishing credit quickly - and I have a couple I work with that are good at it. Let me know if you want contact info.
You can ask lender if thats a wrong information on their denial letter. Income and liabilities ratio can be calculated very easily since the lender has everything on your client application. Lender can't deny the loan if the applicant has valid working visa.
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@Charlie MacPherson yea it has been an odd thing. So they are retired if i didnt say that above,and theyre receiving funds from their retirement from Canada. So maybe the income is not what it would be for a full time worker but not having debt should help. maybe it is a history thing i dont know so far. i thought id see if they can get it under a foreign loan status if that would help their chances.
@Harjeet Bhatti yea ive been telling them to speak directly with the lenders to see if it was a mistake but they verbally were told that it was their status that was a problem.
im going to dig more because someone on either end isnt saying something or maybe there was just miscommunication.
If they are from Canada, maybe they should try TD Bank - it certainly can't hurt much (the hurt would be another inquiry on credit report but that should be readily explainable as shopping for one mortgage and not many mortgages).
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