Sometimes it’s just about the underwriter’s mood that day, weirdly enough.
Seriously, I’ve wondered if they have a “spin the wheel” system back there. One time my friend got grilled over a five-year-old Chapter 13, but another lender barely blinked. Is there a secret handshake we don’t know about?
I totally get what you mean—it really does feel random sometimes. When I went through pre-approval, one lender practically highlighted my old medical collections like they were the end of the world, but the next guy barely mentioned them. From what I’ve gathered, it sort of depends on the lender’s internal rules and maybe how strict their underwriter is feeling that week. It helps to have all your paperwork in order, though... I started keeping a folder with every possible doc just in case. Not a secret handshake, but close?
It helps to have all your paperwork in order, though... I started keeping a folder with every possible doc just in case. Not a secret handshake, but close?
That folder thing is clutch. I did the same—scanned everything into a cloud drive, too, just in case they asked for something random at the last minute. It’s wild how much it can vary from lender to lender.
On the bankruptcy timing, here’s what I found digging through all the fine print and talking to a few brokers:
- Age of bankruptcy matters a lot. Most lenders care less about an old bankruptcy (like 7+ years ago) than a recent one.
- There are “seasoning periods” depending on loan type. For example:
- FHA usually wants 2 years since discharge.
- Conventional loans often want 4 years.
- Some stricter lenders might want even longer, or just say no to any bankruptcy.
- They’ll look at what you’ve done since. If you’ve rebuilt credit, paid everything on time, and have stable income, that helps offset the old bankruptcy.
- A recent bankruptcy (like within the last year or two) is almost always a dealbreaker unless there are extreme circumstances.
Honestly, it feels like a moving target. One lender basically told me, “We care more about patterns than one old event.” Another acted like my five-year-old bankruptcy was still fresh news. I guess it’s a mix of their risk tolerance and whatever mood the underwriter’s in that day.
If you’re worried about how yours will be seen, it might help to ask up front what their specific waiting periods are. And yeah, keep that folder handy... I swear, the minute you think you’ve sent them everything, they’ll ask for a pay stub from three jobs ago or something.
Not sure if it’s a secret handshake, but being over-prepared definitely seems to help smooth things out.
Honestly, I’ve seen the same thing—one lender barely blinked at my old bankruptcy, another wanted a novel’s worth of explanations. I think you nailed it with “moving target.” My refi took forever because they kept circling back to stuff from years ago, even though my credit was squeaky clean since. Having every doc ready saved me a bunch of headaches, but man, the process is unpredictable. Just curious—did anyone actually ask for something super random? I had to dig up an old utility bill from an address I barely remembered...
Just curious—did anyone actually ask for something super random? I had to dig up an old utility bill from an address I barely remembered...
You’re not alone there. During my last mortgage process, they asked for a copy of a check I wrote to my landlord in 2015. I had to call my old bank, who acted like I was asking for the moon. At this point, I’m convinced underwriters just spin a wheel and see what pops up.
On the bankruptcy timing—honestly, it’s wild how much it varies. Some lenders treat anything older than seven years like it’s ancient history, others act like you’re still in court. The “moving target” thing is spot on. Best advice I give people now: keep every piece of paper, because you never know when someone will want proof you paid your water bill in 2012.
