Dawn of a new debt
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!