In the world of alternative lenders, like us here at Kokanee Mortgage, generic formulae like Total Debt Service (TDS) and Gross Debt Service (GDS) have little meaning.
After all, the borrowers we work with are using alternative lenders because they don’t fit into the existing and more traditional ratios.
As an alternative lender, we are changing the traditional acronym of TDS to be defined in a way that is more suited to our practices. TDS for us now becomes Thoroughly Descriptive Story.
Let me explain…
Thoroughly: We want ALL the details, especially the bad stuff. Hoarders, grow-ops, bankruptcies, etc. – our underwriters need to know it all up front.
Descriptive: Let us know how they got into their current situation. You can never provide too much detail and it helps us understand how we can help.
Story: Let us know how a mortgage with us will help them get over whatever hurdle they’re facing. Show us that they are on an upward financial trajectory and just need some help through an immediate cash crunch.
Craft an “alternative” TDS for your next alternative lender client and you’re sure to find faster and more improved results from your lender partners.