Factors are simply what each individual lender looks at. Not all lenders are looking at the same things when they approve your loan or set the interest rate. Go with a lender who rewards your good factors and isn't so concerned about your bad factors and the entire loan process just got a lot more enjoyable for you.

With thousands of loans you'd have to expect similarities, and while there are indeed many similarities there are also many distinctions. There are hundreds of factors to consider and once they start relating to each other thousands of dependent relationships. There's an old axiom that says Banks will only lend money when you can prove you don't need it which at times may seem true but in the world of mortgages is just not true. Lenders compete for loans (for a simplified overview of the competition each lender is in see the Mortgage Backed Securities section of Forecasting.) And ultimately this competition means each lender is trying to attract or entice a different borrower. You want to be looking at the lenders who have programs that take maximum advantage of your personal situation.

It's not only simple it's smart business for lenders to not all be chasing the same borrower. And the most prominent way is to assign varying importance to loan factors. For example: it could be the FICO score at which a certain rate reduction kicks in; the amount of reserves you need with this lender or that lender; or how much your payment can go up (rate shock); how many other properties you own or have an interest in; or even by asking if this is your first home purchase.

Suppose you waltz in to a lender who believes large down payments are more important than great credit while you have spotless credit and are hoping to get by with a little less on the down payment side. Think you're going to find the loan more frustrating than if you happen upon the lender who loves spotless credit more than large down payments? You can bet you will! The Wagner Group searches thousands of loans to find the perfect match. We do the waltzing for you and take the guesswork out of finding the best lender.