How the mortgage process could get ugly if you have a difficult picture

Residential Mortgages in America today are designed for families to fit a box. If your financial profile in anyway is outside of that box, you might experience what otherwise might be a very difficult and challenging process, so it’s important to know how the process works. Here’s what you ought to consider …

Here’s how most mortgage companies run their mortgage loan process. Step one to do an application for credit and let the lender pre-qualify you for whatever your desired purchase price is supportive of the cash, credit and income. Then the file gets moved into underwriting and the loan will come out of underwriting approved with conditions. Meaning provide these conditions and you’ll receive a commitment to lend. Lender requests conditions from you. The perfect scenario is conditions are reviewed signed off and you order docs, sign and fund and close. That’s not common. Here’s where things bottleneck…

When the documents you provide create more conditions. If you have multiple rental properties for example or multiple streams of income or several different types of bank accounts where your down payment monies or multiple businesses, this is where things can become tricky. Its more the most part not possible for lenders to have a zero conditions loans. Remember the job of the underwriter is to mitigate risk. They find, create and sign off conditions. They are the only one standing between you and keys to our house and they control whether you get your loan or not or after lots of hoop jumping.

  • Keep your accounts separate
  • Keep your business separate
  • Keep all schedule of real estate separate and detail
  • Be prepared to at times send in the same docs more than once

A way around the inevitable hoop jumping you might otherwise experience is getting your lender to pre-underwrite your loan especially if its complex, heavy, ultra- detail or technical. A good lender at the beginning should be able to articulate the level of difficulty your financial scenario may represent to an underwriter. Note a lender who has working good relationship with underwriting is a sold bet. Avoid the lender that has no direct contact with underwriting.

 

Looking to get a mortgage? Get a no cost quote now.

RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

A side-by-side visual comparison of a modern Sonoma County home and a more rustic Lake County home, illustrating real estate affordability differences.

Can’t Afford Sonoma? Why Lake County Might Be the Smartest First-Time Buyer Move in 2025

Can’t Afford Sonoma? Why Lake County Might Be the Smartest First-Time Buyer Move in 2025…

Couple viewing a home in Sonoma County, California surrounded by vineyards and hills

How much income you need to buy a house in Sonoma County, California

Buying a Home in Sonoma County: What Income Do You Need in 2025? Sonoma County,…

"Illustration of a homebuyer navigating mortgage options with icons representing cannabis income, FHA restrictions, conventional loan pathways, and financial documents, symbolizing the challenges and solutions for cannabis industry workers seeking home financing.

Understanding Cannabis-Related Income and FHA Loan Qualification

Can You Use Cannabis Income to Qualify for a Mortgage? Here’s What You Need to…

A hopeful first-time homebuyer or couple sitting with a loan officer at a desk, looking at documents or a laptop, with a house in the background or visible on screen—professional and optimistic tone.

Can you buy a house with a 500 credit score?

Can You Buy a House with a 500 Credit Score? Yes—Here’s How Buying a home…

View More from The Mortgage Files:

begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!