Mortgage financing is not a one size fits all. Multiple lenders offer various programs based on lending policies and guidelines that are based on risk management philosophy. The broad lending guidelines for conventional and government loans are established by Fannie Mae, Freddie Mac and HUD (FHA loans). These guidelines are either liberally or conservatively applied by lenders or somewhere in between. The ability to get approved for a mortgage therefore depends on the lending guidelines adopted by a particular lender that may or may not follow the broad guidelines set by Fannie Mae, Freddie Mac or FHA. A conservative lender may have guidelines that are more stringent while a more liberal lender may use the guidelines as written which will be more favorable for borrowers. For example a conservative lender may require a higher debt to income ratio than a more liberal lender.
Finally many borrowers seeking a mortgage make an application with a lender over the phone or online. Initially they will deal with a loan originator but after the initial qualification are handed off to back office personnel and just become a number in a very large pool of mortgage originations. A mortgage transaction can be a very complicated process. The consumer needs expert guidance and advice and a personalized the relationship built on mutual trust that does not end at closing but survives indefinitely into the future. American Mortgage Group is founded based on these values where the client relationship is the bedrock of our business and we combine this with comprehensive industry knowledge, efficient business process execution and compelling partnerships with stakeholders to deliver fast closings and tremendous customer satisfaction.
Depending on the individual situation a person may not qualify with a particular lender but will absolutely qualify with another whose lending guidelines are more favorable to their individual situation. It is critical therefore that prospective borrowers seek to deal with a company that provides exposure to multiple lenders thus ensuring a greater chance of approval due to a much wider pool of program options
Not only is multiple lenders and programs critical for mortgage approval but to obtain the best possible terms for a mortgage. Interest rates vary widely among lenders. The very large banks and other conspicuous mortgage companies spend millions to convey an image that they maintain the very best interest rates. However there are many smaller and more nimble mortgage lenders with a business model that does not include expensive overheads such as large brick and mortar structures and thousands staff related expenses. As a result a lower cost structure they are able to price more aggressively and therefore offer better interest rates to consumers. The ability to shop to determine the best interest rates is another critical reason to do business with American Mortgage Group.