Do Mortgage Lenders Have Different Underwriting Requirements?

How lender underwriting overlays can varyOne question I hear often from buyers shopping multiple lenders is some version of this:

“Do different banks need different underwriting documents? I’m talking to two lenders right now. One will give me a lower rate but is asking for a bank statement from my family who wired me gift funds. The other has a higher rate but says they only need a gift letter. Is it because some banks are more strict because of their lower rate?”
The short answer: yes, lenders can and do have different underwriting requirements — and understanding why can save you from surprises late in the process. [Read more…]