Residential Mortgages - Probation

In this episode of the Close More Deals Podcast, host Scott Dillingham tackles one of the most common challenges mortgage professionals face: helping clients who are on probation or have less than one year at their current job get approved for a mortgage. Many buyers assume they need years of stable employment to qualify for financing, but Scott reveals the lending solutions that exist beyond traditional bank requirements.

Scott explains that while many major banks require at least one year of employment history, this requirement is not universal across all mortgage providers. When clients receive a decline from their bank due to probationary status or limited job tenure, it should immediately signal an opportunity to work with a mortgage broker who has access to more flexible lending options. The key distinction Scott makes is between clients who simply have a new position versus those with inconsistent employment patterns jumping between roles every few months.

For borrowers on probation, Scott shares that numerous A-lenders will approve mortgage applications regardless of probationary status. This flexibility proves especially valuable for individuals relocating for work, changing careers for better opportunities, or starting positions in new employment categories. The approval process works through CMHC-insured products as well as alternative and private lending channels, giving mortgage professionals multiple pathways to find solutions for their clients.

Scott highlights the role of monoline lenders in providing these flexible mortgage solutions. Unlike traditional banks that offer multiple financial products, monoline lenders focus exclusively on mortgage lending. This specialization allows them to develop more nuanced underwriting guidelines and take a closer look at each application rather than applying rigid policies. Their reduced overhead costs from operating without physical branches also translates to competitive rates for borrowers.

The episode emphasizes the importance of mortgage professionals understanding that each client file requires individual assessment. While Scott maintains realistic expectations about approval possibilities, he encourages agents and brokers to explore all available options before telling clients they cannot qualify. Working with the right lending partners can transform what appears to be an impossible situation into a successful mortgage approval.

We would love to partner with you for your referrals. 

Have your clients Book A Free Strategy Call Here!

Or,

Visit our Website.