10/01/2019
DID YOU KNOW there are actually 3 tiers or levels of lenders?
We call these tiers as A, B or C lenders and I like this photo as a good way to representing them... As you see from the top to bottom the size of these boxes.
Now think of the one at the top as the A-Lenders. They are the ones that everyone is more familiar with such as the major banks and credit unions. They are at the top of the food chain but small because they provide the lowest rates, but with low rates also comes a very tight small box of guidelines you have to fit within to obtain.
As you move down, the boxes get bigger. So what does that mean? Bigger the box, bigger the options of qualifying, but also meaning slightly bigger the rate as well. So as a second tier would be B-lenders who could get away with other things such as bad credit or more flexible income methods.
The biggest box at the bottom represents C-Lenders. These are most likely private lenders with the highest rates but will approve many other options that others won’t.
In overall, this is just an example of how many different types of ways to get approved as well.
For more information please contact me at [email protected] or 604.779.4249
