Sometimes they’ll spot deductions or income streams that the online forms just gloss over.
That rings true—I've seen local lenders pull off some pretty creative solutions, especially for clients with complex portfolios. Online platforms are convenient for a ballpark figure, but they’re not always nuanced when it comes to non-traditional income. I had a client last year who was self-employed with several rental properties. The online quote she got looked great, but once they dug into her tax returns, the offer changed completely. In person, her lender actually understood the story behind her Schedule E and found ways to qualify her for a better rate than she expected.
It’s not always about getting a “better deal” per se, but more about the lender really understanding your financial picture. That can lead to better terms or just fewer headaches during underwriting. Peace of mind counts for a lot, especially when you’re dealing with multiple income streams and stacks of paperwork. But I will say—sometimes the online rates are hard to beat if your finances are straightforward and W-2 based. For anything outside the box, sitting down with someone in person usually pays off.
IN-PERSON ISN’T ALWAYS MAGIC FOR EVERYONE
It’s not always about getting a “better deal” per se, but more about the lender really understanding your financial picture.
I get where you’re coming from, but I’ve gotta say, my experience was the total opposite. I went in thinking the local lender would “get” my weird freelance income, but it felt like I was speaking a different language. The guy just kept squinting at my 1099s like they were ancient runes. Meanwhile, the online platform at least let me upload everything and spit out a number without the awkward small talk.
Not saying in-person is bad, just that sometimes it’s a toss-up. If you luck out with a savvy lender, awesome. But if you get someone who’s only used to W-2s, it can be just as much of a headache as the online route. At least online, I can wear pajama pants and eat cereal while getting rejected for a mortgage... silver linings, right?
Totally get what you mean about the 1099 confusion—had a similar thing happen when I tried to buy my first investment property. The loan officer just kept asking for “proof of income” like there was some magic document I was hiding. Ended up going online too, just for the sanity. Out of curiosity, did you find the online rates were actually better, or was it more about convenience for you? I’ve noticed sometimes the online quotes look great but then the fees sneak up later...
Honestly, I see this all the time—online rates look super appealing at first glance, but the devil’s in the details. I’ve had clients get really excited about a low rate they saw online, only to find out at closing that the lender tacked on a bunch of “processing” or “origination” fees that weren’t obvious up front. Sometimes those can eat up any savings you thought you were getting.
But here’s the thing: even with the extra fees, some folks still prefer online because it just feels less intimidating than sitting across from a loan officer grilling you about every dollar you’ve ever made. I’m curious, did you feel like the online process was actually more transparent, or just less stressful? And did you ever get a straight answer about what counted as “proof of income” for them? That part always seems to trip people up, especially with 1099s...
I’ve run into the 1099 proof-of-income headache with clients more times than I can count. Some online lenders will just ask for your last two years of 1099s and bank statements, but then turn around and ask for a CPA letter or extra documentation anyway. It’s honestly not always more transparent online, just less face-to-face awkwardness. I do think in-person, you get a clearer answer upfront about what counts as income—especially if your finances aren’t super straightforward. The tradeoff is, yeah, it can feel a bit like an interrogation.
