Mortgages - National Banks Versus Local Banks

Have you ever tried to get a mortgage? Did you go with a national or more local bank? Here's one key difference between the two: formulas.

National lenders usually get their money from the same place. They all follow federal lending guidelines regarding debt to income ratios and similar formulas. Thus, if you have a special case, it can be hard to get accepted under a national lender's program.

Local banks, on the other hand, usually supply their own money for mortgages. They loan much less money, but they are generally more flexible in the money they do lend. This means that if you have a special case, you might have a better chance of getting mortgage through a local bank.

If you have a high debt to income ratio OR you have income that is hard to properly document (self-employed, etc), a local bank might be a good mortgage choice for you. Check into them, and let me know how it worked for you.