When a lender issues you a loan approval, what does it mean? It means the loan meets program guidelines for saleability. A lender will grant you a loan approval when they know they can sell the loan and make money on it. The game is about the lender making money on the loan. When the lender asks you for certain documents during a transaction, it is so they can package the file to sell it, which in turn allows them to lend you money. For example, a lender may inquire about large deposits in your accounts due to anti-money laundering laws. They need to make sure the deposits are from known sources so they can package the file to sell it.

Although your credit and income may easily meet criteria to obtain a loan, and you may think the lender is making odd requests, it is because those documents are needed for them to sell the file and lend you the money.

If you have any questions on conditions you may have received from a lender, give us a call, we can help.

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