I’ve noticed the same thing—local lenders will talk up their flexibility, but the second you’re not a W-2 employee with a clean pay stub, it’s like you don’t fit their mold. Makes me wonder if their “personal touch” is more marketing than reality. Have you ever tried pushing back or asking for exceptions? I’ve had mixed results—sometimes they’ll budge, sometimes it’s just a hard no. Do you think the predictability of the big banks is worth trading off the chance at a better rate locally, or is it just too much hassle in the end?
“Makes me wonder if their ‘personal touch’ is more marketing than reality.”
Man, I’ve had almost the exact same experience. Local lenders love to talk about how “relationship-based” they are until you mention 1099 income or, heaven forbid, rental cash flow. Then suddenly it’s like you’re speaking a different language. I’ve had one or two go to bat for me, but most of the time it’s just more paperwork and the same old “computer says no.” Honestly, sometimes I’d rather just deal with the predictable hoops at a big bank and skip the song and dance. At least you know what you’re in for.
“Honestly, sometimes I’d rather just deal with the predictable hoops at a big bank and skip the song and dance.”
Totally get where you’re coming from. I keep hearing about this “relationship banking” thing, but when push comes to shove, it feels like they’re all reading from the same underwriting script. Ever notice how quickly the “personal touch” disappears once you mention anything outside W-2 income? I’ve had local lenders ask for more docs than Chase ever did… makes you wonder if the hassle is worth it or just another sales pitch.
It’s funny you mention that—sometimes I feel like the smaller lenders are actually more risk-averse, not less. I’ve had clients with 1099 income get grilled way harder by a local credit union than by a national lender. I get why they’re cautious, but it can be a headache. Have you ever found a local lender that really does things differently, or is it mostly just marketing?
I’ve noticed the same thing, honestly. There’s this idea floating around that local lenders are all about “relationship banking,” but in practice, I’ve seen them be even more by-the-book than the big guys—especially when it comes to non-traditional income. I once tried to refi with a small-town bank and felt like I was applying for a top-secret clearance. They wanted every scrap of documentation, and then some.
I get that they’re protecting themselves, but sometimes it feels like they’re just not set up to handle anything outside the W-2 box. National lenders, for all their bureaucracy, seem to have more established processes for self-employed folks or investors. Maybe it’s just that they see more of those applications, so they’re less spooked by them.
That said, I’ve heard a few people swear by their local lender, but I wonder if that’s more about personal connections than actual flexibility. For me, it’s been a toss-up—sometimes the marketing is just that... marketing.