Areas of Lending - Underwriting Fundamentals 101
Areas of Lending
So it's very important for you to know about the areas of lending that the lenders will cover.
So every area, depending where it is, usually every lender has a different role.
So there's the major banks and their role is - if there is a branch within 100km - one of their banks will lend. And they have locations all over the place.
But if you're past that and those are really small or rural communities, it's hard to get financing.
So when you are working to get an approval approval, if you're getting a second home cottage or even they want to live in one of these remote towns, you need to check the lenders in the area and see who will do this type of lending.
One little trick that I do as well and say I cannot find a traditional lender. Then I'll look at maybe some of the credit unions that are in the area.
We can contact them and work with them to help get you a mortgage.
If there is a credit area, it's not always the case, but there's little tricks of the trade that we can do.
So check this out. Some of them have population requirements like some of the lenders, and if it's not known that they actually will not lend in that area, regardless of how strong your credit is.
Talk to a Mortgage Professional
Now, naturally talking to all of these different mortgage lenders can be very time-consuming and confusing as the lenders throw around loan terminology as if you are supposed to know this already.
That is why we suggest working with a mortgage broker like us.
Instead of spending your time looking at lenders for an example of loans that suit your needs and the area you want to buy into, we can leverage our existing relationship with many of the major lenders to help you find the financing you need the first time.
If you want to learn more, then please go ahead and book a free strategy call with us at LendCity by clicking the link below.