A lot of people think that qualifying for a mortgage is going to be the same from one bank or mortgage company to another. Most mortgages are placed according to the guidelines set by the big players in the mortgage industry, Fannie Mae and Freddie Mac, who buy up most of the conventional mortgages after they are originated, or FHA or VA guidelines for government loans. It is true that lenders all work through the same guidelines, but in reality, it’s not quite that simple. It is very common for a borrower to be denied a loan with one lender, and then be able to close on a loan for the same program with another. Why is this possible? A big answer to that question, is overlays. Overlays are additional requirements set by each bank or mortgage lender, beyond the guidelines established. If you go back in time to 2007 or 2008, there was no…

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