If the loan is backed by Govt agency why does lending criteria change from one bank to another?
Well, it's quite simple. Govt on its guideline sheet to banks lay out the terms. Let's make it simple for understanding that Govt agencies tell banks that as long as you get me a borrower who can afford to give me an apple a day, will back their loan.
Things you should look at before transferring your loan
When it comes to banks. Banks rope in investors and say well the Govt is only asking for an apple. If I lay a rider on top of Govt guidelines and get you, borrowers who can afford to give two apples a day, would you be willing to but a loan from us on a premium.
That is how banks like to play themselves. Different investors, different demands and that is why over and above Govt agencies guideline for a mortgage. We have these riders that ask for more than what is typically required.
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