Are You an A or a B?

We often focus on the banks or credit unions as mortgage lenders. But for those that may not qualify under their rules, there is another option.

Banks and credit unions are considered A-lenders. They are a first line lender for those that qualify under their rules.

From there, we have B-lenders. These are alternative lenders who offer excellent solutions for those that may not qualify with an A-lender. Or, perhaps, they offer better rates and terms.

The important part to note here is that there are options. I have heard people tell me they are discouraged because a bank has turned them down. I find this frustrating as in most cases, they would have easily qualified with a B-lender.

A few areas that might impact your mortgage with a B-lender are:

  • a higher mortgage rate
  • A shorter mortgage term
  • Additional fees

However, once you show the B-lender that you are back on track financially and you have kept up with payments and increased your credit score, you can be eligible for better rates, terms and fees.

Have you or someone you know been turned down by an A-lender? Let’s talk about how we can make your purchase or refinance come true!