The Differences Between Being Approved By a Mortgage Lender and a Local Bank

Today I’m joined by Jennifer Micklos from Movement Mortgage to spell out the differences between being approved by a mortgage lender and a local bank. 

Jennifer Micklos from Movement Mortgage often talks to Realtors who tried to urge their clients to call her about financing their next home purchase, but their clients preferred to go through their local bank because of the relationship they already had.

Many people think they’ll get special treatment by working with their banks, and that’s not always the case; banks can be more restrictive about how much money one can spend and which programs they qualify for. Oftentimes we find that people are placed in the wrong program or would qualify for a higher-priced home.

Recently, a client reached out to Jennifer; they already had been pre-approved for $250,000 by their bank. Then they found a house they loved that was priced at $275,000. To be able to go up higher for the home they wanted, they needed a letter.


“Providing mortgages isn’t a top priority for banks, but it is for mortgage lenders.” 


However, the bank was closed on Saturday, so they asked me to take a look at it. When she evaluated their options, we found that they weren’t in the right program and they could actually spend a lot more than what they were limited to by their bank. In the end, it worked out in their best interest to work with a different lender; Jennifer was able to get them into that $275,000 home, and they were really happy.

Those types of situations aren’t uncommon in Jennifer’s line of work, given how conservative banks are compared to mortgage companies. Banks and smaller credit unions follow government guidelines to provide mortgage financing services, but many of them often set limitations to avoid risky lending. This limits your buying power, and if your bank isn’t prepared to engage in ‘risky’ lending, it might limit your power severely.

Plus, providing mortgages isn’t a top priority for banks, but it is for mortgage lenders. Mortgage lenders are more flexible and have many more programs available to fit buyers’ needs, even if they have lower credit scores.

Mortgage lenders aren’t here to hurt you. Lenders like Jennifer are honest with their clients if and when the best option for them isn’t a mortgage lender. That way, you can compare and make an informed decision about how to proceed.

If you’re interested in learning about your home financing options with Movement Mortgage, reach out to Jennifer at (407) 203-7153 or visit

For all your real estate needs, don’t hesitate to reach out to us at the Mathison-Klein Group. We’d love to help you purchase your next home.

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