Dawn of a new debt

Dy­lan Nosé

Ottawa Sun - New Homes - - HOMES -

or­der of im­por­tance. The pri­or­i­tiz­ing of your ac­tions, risk assess­ment and risk man­age­ment will re­flect that or­der of im­por­tance. The de­sire to ex­pand your un­der­stand­ing of the ba­sic prin­ci­ples of bank­ing and evolve them to the more com­pli­cated world of in­vest­ing, as well as the chal­lenges of bor­row­ing, can of­fer you more op­por­tu­nity. This can make things in your life less com­pli­cated, per­haps more in­ter­est­ing and def­i­nitely lib­er­at­ing. The abil­ity to make bet­ter fi­nan­cial de­ci­sions will lead to your suc­cess, but the op­po­site is also true: mak­ing poor, un­in­formed or, worse yet, mis­in­formed de­ci­sions will teach you valu­able lessons. The key is try­ing to think of the things you may not have thought of, and just to be sure, you may need to run ideas by the ones who know, have the ex­pe­ri­ence or are will­ing to seek more knowl­edge.

These are all ei­ther our les- sons or the lessons of oth­ers, and when it comes to bor­row­ing, for in­stance, we can see just how much our abil­ity to bor­row money per­me­ates so many other aspects of our life. In­come, down pay­ment and credit are all sta­ples of be­ing able to bor­rowwe’ve cov­ered that. Where it gets more ob­scure are in the de­tails of these bor­row­ing cor­ner­stones.

In­come comes in all waves and shapes, some sim­ple and oth­ers very com­pli­cated. Down pay­ment can be chal­leng­ing, de­pend­ing on where you keep your money tied up or buried. Credit can be even more ob­scured, es­pe­cially when it comes to cal­cu­lat­ing pay­ments and what is on your credit re­port. These are all im­por­tant aspects of the ap­proval, but the ap­proval is ac­tu­ally the easy part. It’s fi­nal­iz­ing the deal that takes time, ef­fort and the right knowl­edge. No one wants their deal to fall apart or be de­layed due to some­thing as silly as mis­man­aged pa­per work, or worse, a mis­cal­cu­la­tion of num­bers. The credit ap­proval peo­ple, the un­der­writ­ers, who have the job of as­sess­ing risk will want to en­sure that the many lay­ers of pa­per­work leave no stone un­turned. You may not re­al­ize it, but even one missed pay­ment can up­set the ap­ple cart in a very frag­ile eco­nomic sys­tem. It may not seem like a big deal if one pay­ment is missed on one lit­tle mort­gage, but the rip­ple ef­fect can be far reach­ing. This is why care­ful assess­ment of lend­ing hun­dreds of thou­sands of dol­lars is crit­i­cal. The per­son in the mid­dle, the bro­ker, is at the cen­ter of the ques­tion­ing, of­ten de­fer­ring to the client for proof via doc­u­men­ta­tion or rea­son­able ex­pla­na­tions which can re­sult in a level of push back or ne­go­ti­a­tion to en­sure the mort­gage is first ap­proved and then funded.

It i s hard some­times be­cause a lot of us think we are mak­ing good fi­nan­cial de­ci­sions or ones that won’t af­fect our fu­ture. The prob­lem is that we can’t ever say ex­actly where we’ll be. Fu­ture dec­la­ra­tions are a large part of the com­pli­ance that’s re­quired in the mort­gage in­dus­try, which cor­re­sponds with many other top­ics such as due dili­gence and suit­abil­ity. These words are ev­ery­where in the lend­ing pa­ram­e­ters, guide­lines and doc­u­men­ta­tion. The path to a com­pleted mort­gage file is more com­pli­cated than we think or ex­pect, and de­cid­ing on a re­li­able and com­pe­tent bro­ker is in­fin­itely im­por­tant.

It’s been a pleas­ant chal- lenge to try and dis­sect and in­form, but mostly to cre­ate a di­a­logue about fi­nances. Of­ten it is the sim­plest of things which can be­come the most im­por­tant, and sim­ply talk­ing about money can help fur­ther one’s own ed­u­ca­tion. As a bro­ker, you hear and learn about many dif­fer­ent life sto­ries, from the well­man­aged to the un­for­tu­nate; ev­ery­one has cer­tain fi­nan­cial goals and be­ing here to help is the most re­ward­ing part of the job. Hav­ing open and de­tailed dis­cus­sions about money has hope­fully helped a few read­ers along the way. The goal of these con­tri­bu­tions has al­ways been to cre­ate a dis­course about fi­nances and help oth­ers find trans­parency in an of­ten opaque world of fi­nances.

That said, when one chap­ter ends a new one be­gins, and I would like to in­vite those who have en­joyed my con­tri­bu­tions over the years to search me on Face­book and like my page, Dy­lan Nose Mort­gages, for a con­tin­u­a­tion of the dis­course we’ve cre­ated here. I’d like to wish ev­ery­one good for­tune as we bid farewell for now. Cheers!

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