I do all my business with XYZ bank and now that I need a mortgage they rejected me. Why is that?

Quite often buyers believe that the bank they are dealing with for many years is the best possibility to issue them a mortgage on their home. It does make a lot of sense since the bank already knows your finances, your income situation and your credit worthiness. Through many years of working with different lenders I have often found this to be false. Why?

Banks are spending money to attract new clients but when their existing client’s needs help they turn them down. Often the client ends up doing business with a different lender. I call it, “I am too big to deal with you” syndrome.
Here is a tip for you. Before you approach your own bank, get a pre-approval from an independent mortgage broker.  Then, go back to your bank and ask them, “CAN YOU BEAT THIS?” It is quite different than asking them, “Can you see if I can get a mortgage?”

This works well!

Tibor