What makes one lender different from another?

[CarHaulerInvester]

What makes one lender different from another? I thought if i borrow money it should be the same stanard, however its not please explain the difference amosgt lenders

[Gunnar419]

I don't think anybody can explain all the difference between all lenders or explain why each difference exists. The shorthand answer is that each lender is a private company (or sometimes government agency) with different standards. Some like low risk. Some like high risk. Some want only the most highly qualified borrowers. Some are willing to work with people with less than perfect credit. Some are willing to do small loans. Some only want to do bigger loans. Some deal only with a specialized group (veterans, low-income, rural people, locals), etc etc etc.

And THANK HEAVEN for those differences! Do you realize that if all lenders had exactly the same standards, only one small group of people would ever qualify to borrow? Everybody else would be shut out forever.

Wanting all lenders to be alike is like wishing that there were only one type of hamburger, only one style of suit, one brand and model of computer, one haircolor, one model of car or house. Awful!

[gotideas]

totally agree with you.  I have had a less than stellar experience with my builder's lender who has placed a million roadblocks in my path to homeownership.  Despite that I am now working with a great lender who is confident we can close on my dream home.  I think it has to do with overlays and their set business practices.  What amazed me was their smug self assurance that if they couldn't do the loan then nobody could and I should just give up.  Only when another lender approved me did they come back with a loan offer.  Sometimes it is just how hard the lender wants your business or if they find it easier to just move on to the more qualified guy.  Just a couple of days ago the builder's lender called me with 48 hr notice that they needed an updated loan approval from my lender or my house would be resold-although they had no mentioned this to me in the last month when we spoke several times.  They said it was because due to the increase in interest rates I no longer qualified with them and they had to make sure house would be sold.  Like waiting just a few days would make a big difference especially when they sell upwards of 5 homes per month.  Also the reason the interest rates went up was because they refused to process my application timely believing i wouldn't qualify.  Then for two months after approval they refused to start construction waiting for yeat another conditional loan approval so instead of being done on Aug 5 my original closing date I am now set to close at the end of September and all of a sudden it has become VERY important to them that I close on time.  My thoughts are pick a lender you feel good about and who has good communication with you as this is the most stressful event and I would rate right up there with labor!