Honestly, I’ve had better luck with local banks who actually know my name. They’re not miracle workers, but at least you can have a real conversation instead of just getting a flat “no” because of a number on a spreadsheet.
That’s been my experience too, especially when it comes to DTI. I’ve seen some lenders treat the ratio like it’s carved in stone, but smaller banks sometimes look at the bigger picture. Had a situation last year where my DTI was just over their “limit,” but because I had a long history with them, they still approved me after a chat and some extra docs. It’s never a guarantee, but it’s not always an automatic denial either. Anyone else ever get surprised by what counts as “flexible” paperwork?
Funny how “flexible paperwork” can mean anything from a simple letter of explanation to a full-on spreadsheet of your side gig income. I’ve had lenders ask for the most random stuff—one even wanted proof my bonus was recurring, despite three years of paystubs. It’s wild how much discretion some local banks have compared to the big guys. Definitely feels like being known as a person, not just a number, can tip the scales sometimes.
It’s wild how much it can vary, right? I’ve seen files where a detailed letter of explanation was all it took, and others where the underwriter wanted a letter, spreadsheets, and even a call to the employer. Local banks really do have a different vibe—sometimes more hoops, sometimes less. I’ll admit, I’ve had clients get approvals with borderline DTI just because a loan officer knew their story. There’s still a human element, even if the guidelines say otherwise. Just goes to show, it’s not always black and white.
I’ve run into this a bunch, especially with smaller lenders. Sometimes I think the “automatic denial” rule is more of a guideline than a hard stop. Had a deal last year where the DTI was just over the line, but the borrower had a long-standing relationship with the credit union. They looked at his rental income history and gave the green light. It’s definitely not as cut-and-dried as people make it sound… relationships and context matter way more than folks realize.
It’s definitely not as cut-and-dried as people make it sound… relationships and context matter way more than folks realize.
That’s been my experience too, especially with local banks. I’ve seen folks get approved with a DTI that would make a big lender run for the hills, just because they’ve banked there for years. But then you hear stories about people with “perfect” numbers getting denied for weird reasons. Do you think this flexibility is actually good for borrowers, or does it just make the process more unpredictable?
