- Local loan officers might be old-school, but they’ll actually dig into your docs and spot issues before they blow up your deal. - For anything outside plain vanilla W-2 income, I’d rather hav...
Had to laugh at the bit about junior reps and Schedule E. Been there—tried explaining my rental income to an online lender once and got a canned response about “unsupported documents.” Meanwhile, my local guy flagged a missing HOA doc before I even knew it was an issue. I do peek at online rates just to see if I’m in the ballpark, but when it comes to actually closing, I’d rather deal with someone who’s seen a messy tax return or two. Not worth the stress otherwise.
That’s exactly it—sometimes those “unsupported document” emails feel like they’re just copy-pasting from a script. I’ve had online reps get totally lost when I sent over partnership K-1s. Out of curiosity, has anyone actually managed to get a complex deal through an online lender without major headaches? Or does everyone just use them for rate shopping and stick with local folks for the real work?
sometimes those “unsupported document” emails feel like they’re just copy-pasting from a script. I’ve had online reps get totally lost when I sent over partnership K-1s.
Yeah, that’s been my experience too. Once you throw anything more complicated than a W-2 at most online lenders, it’s like their system just short-circuits. I tried running a deal with multiple LLCs and K-1s through one of the big online outfits last year—ended up spending more time explaining what the docs even were than actually moving forward. They kept asking for “proof of income” in ways that made no sense for partnership returns.
I still use online quotes to get a ballpark on rates, but when it comes to actually closing something with layers (multiple partners, rental income, etc.), local lenders or small banks just seem to get it. They’ll actually pick up the phone and talk through the structure instead of sending canned responses.
Has anyone found an online lender that can handle stuff like this without endless back-and-forth? Maybe there’s one out there, but I haven’t seen it yet. For now, rate shopping online is about as far as I’ll go before bringing it local for the real paperwork.
I tried running a deal with multiple LLCs and K-1s through one of the big online outfits last year—ended up spending more time explaining what the docs even were than actually moving forward.
You nailed it. Once you’re outside the W-2 box, most online lenders just aren’t built for nuance. I’ve seen clients get stuck in endless loops over “unsupported” docs that any halfway decent local banker would recognize in two seconds. Online’s great for quick rate checks, but when things get layered, I’d rather deal with someone who actually understands how partnerships work. It’s not just you—this is a pretty common pain point.
Online’s great for quick rate checks, but when things get layered, I’d rather deal with someone who actually understands how partnerships work.
That’s been my experience too. Here’s how I usually approach it when there are multiple LLCs or K-1s involved:
1. I’ll start online just to get a ballpark on rates and see what’s out there—no harm in that.
2. Once I know it’s not a cookie-cutter W-2 situation, I switch gears and reach out to a local lender or credit union. They’re way more likely to “get” the structure and not freak out over K-1s or pass-through income.
3. Before meeting, I prep a summary sheet explaining the ownership structure and flow of funds. Saves a ton of back-and-forth.
4. If they’re still confused after that, I move on—there are always lenders who’ve seen this stuff before.
Online tools are fine for basics, but once you’re juggling entities, it’s just easier to talk to someone face-to-face (or at least on the phone). Not saying online is useless, but for anything outside the norm... yeah, it gets messy fast.
