I want to share an observation that came to me today. As we are presenting more and more loans to banks and underwriting one of the questions I am now asking is "What is the lenders credit approval limit,
At first you may think that this question is obvious, but upon further investigation you will hopefully see why I think this is so important.
Every underwriter has a limit of what they can approve, each time you ask for more money you have to go to the next level of approval. For example a loan of 500K may only take a local signature while a loan of 1.5K may take three signatures, one of which is out of the area, and has no idea of the local conditions,
Let me be more specific. we have one loan that is about 1.2K, I found out that if I keep the loan under 1.2K we could have approval at the local level. The more we ask for the more people that have to approve the loan. So be aware of the signers limit, and try not to exceed it, when you have the opportunity to control the loan amount,
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