Had a similar experience myself—big banks weren't thrilled about my rental income situation because it didn't fit neatly into their boxes. Ended up going with a smaller lender who actually listened. Curious, did your credit union offer competitive rates compared to the big guys?
Went through something similar when I was refinancing a couple years back. Big banks weren't exactly thrilled about my freelance income either—guess it didn't look "stable" enough on paper. Ended up chatting with a local credit union and was pleasantly surprised. Their rates were pretty competitive, actually slightly better than some bigger banks I'd checked out. Plus, the whole experience felt way more personal.
Did your smaller lender have any extra hoops to jump through because your income situation wasn't typical? With mine, there was a bit more paperwork involved, but nothing too crazy... mostly just explaining the details clearly. Curious if that's typical or if I just lucked out!
Yeah, your experience sounds pretty spot-on to me. Honestly, I deal with this stuff all the time, and big banks can be notoriously picky when your income doesn't fit neatly into their little boxes. Freelance, self-employed, gig economy—you name it—they seem to treat it like some mysterious voodoo income that could vanish overnight.
Had a client last year who was a freelance graphic designer making solid money, but the big banks acted like she was selling homemade jewelry on Etsy for pocket change. After a frustrating few weeks of back-and-forth paperwork gymnastics, we ended up taking her application to a smaller local lender (similar to your credit union experience), and it was night-and-day different. Sure, she still had to provide extra documentation—tax returns, bank statements, letters from clients—but nothing too outrageous. Just had to clearly lay out the income and show consistent deposits over time.
Honestly, smaller lenders tend to be way more flexible about this stuff. They actually take the time to understand your situation instead of just plugging numbers into their automated systems and shrugging when things look slightly off. Plus, in my experience, they're often able to offer surprisingly competitive rates. Sometimes even better than the big guys, as you noticed.
The extra paperwork can definitely feel like a hassle at first, but it's usually worth it in the end. And hey, if you got through it without pulling all your hair out or throwing your laptop across the room, I'd say you did pretty darn good...
"Honestly, smaller lenders tend to be way more flexible about this stuff."
True, smaller lenders can be great, but keep in mind they're not always the best fit. I've seen cases where their flexibility comes with stricter terms or higher fees down the line. Always read the fine print carefully...
Good points here. I've had clients who initially loved the flexibility of a smaller lender, but later realized refinancing or adjusting terms was tougher than expected. Sometimes the bigger banks, despite their rigid boxes, offer more predictable long-term options. Curious if anyone's dealt with trying to refinance out of a smaller lender loan—was it smooth sailing or did you hit roadblocks?
