A condo buyer approached us a month back. They had been "pre-approved" 3 years prior to the anticipated registration of their condo they purchased under pre-construction. With only weeks notice, the buyer was advised by the condo corp that the building was being registered and in turn, the client had to finalize their mortgage arrangements. When the buyer approached the original lender that "pre-approved" them for their mortgage, the lender, after further underwriting, decided to pass on the file, a way too common scenario!
This is where are lending partner came in...
After our client discovery call, we found out that the client would likely be selling the condo within a year of moving in. This client was in need of some additional capital for the final down payment and some upgrades. We approached a lender that finances up to 80% of the actual current market value (not so common), versus the original purchase price. This lender is also able to close very quickly so it checked all the boxes. Even though this lender is more expensive than the original lender, the original lender couldn't finance the deal, they couldn't finance current market value which is over $100,000 more than what the client paid and wouldn't be able to close in time. We provided quick capital, the additional capital to help pay the final down payment and cover the upgrades and put some additional capital into the clients pocket that would service the mortgage for the first year after closing.
On pre-construction purchases we have lenders that will
1. Finance 80% LTV
2. Lend on appraised value
3. Close Quick
Thank you