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why can one broker get approval for one loan when another cant? by danzigism735 from Red Owl, South Dakota. 13 days ago Reply


David R Youngs - Assistant Vice President (DavidRYoungs)
#2 ranked lender in Minnesota - 83 contributions

One reason could be that although the company you're working with has a broker license, they aren't actually "brokering" the loan. They may still be funding it themselves on what's called "correspondent lines," that they have with a bigger bank. Because of this, they may have additional restrictions above and beyond what Fannie, Freddie, HUD, etc. may allow for the industry, called "overlays." If you ARE working with a true wholesale Broker though, then another reason could simply be that they aren't aware of or don't have access to the specific lender partner they need to fund the loan. There are probably over 100 wholesale lenders out there, but most brokers only have approved partnerships with a handful. So it could be in your particular scenario, the option you need isn't known by your broker. Sadly there is also the possibility that your Broker DOES have the bank relationship to accomplish what's needed, but your Loan Originator may not be up to speed on the exact product you need. Lastly it could be a situation where a person may not qualify for anything right now, but perhaps are being told by another Broker that they can help, when they really can't. I've seen it happen sometimes, where clients are promised the moon, only to be disappointed again in the end. Hopefully that isn't what is happening in your scenario. I hope this helps and this is a great question! If you want more information on how this works, feel free to call/text me at 651-497-6770 or email me at dyoungs@progressivels.com Thanks!

13 days ago
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,092 contributions

There are many possible reasons.For example, maybe you don't qualify for a conventional loan, but do qualify for an FHA loan. Another is maybe lender A has a maximum debt ratio limit of 45%, while the next allows up to 50% I lend in SD, MN, WI, IA, ND. I can be reached at iMortgageJoe.com NMLS274132.

13 days ago
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 1,894 contributions

To me the simple answer is the expertise of the broker. Some Loan Officers are 'sheltered'. That is, they work for a lender that has a limited variety of source of funds or loan products. Others are simply lazy. If they can't get you to fit into one of the products they are familiar with, then they will turn down. Still others are just too new to know and understand the options available. I have been lending for over 40 years, mortgages exclusively since 1996 and over the years I have salvaged many a deal, where the borrower started elsewhere and either was unable to get the initial approval or did get the initial 'approval, went under contract, only to be told mid-stream that they are not qualified. You want to work with a Loan Officer that has a long Mortgage employment history and is NOT working for a big bank or a Mortgage Banker, but for an actual Mortgage Brokerage. That is the best way to go. As a Broker, we have access to Dozens of investors with Hundreds of loan products for all types of borrowers and scenarios. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We got you covered. NEXA Mortgage is licensed in 46 states ~ www.ApplyYes.com 480-889-9000.

12 days ago
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