Rant: A loan officer told me my DSCR was fine until it wasn't

Had a call with a local bank in Nashville last week. The guy on the phone spent 20 minutes telling me my debt service coverage ratio was solid, we were good to go on a small multifamily refi. Then he emails me the next day saying underwriting flagged it because my operating expenses were too low compared to market comps. I asked why he didn't catch that on the call. He said 'it's a different department.' Real helpful. Has anyone else had a preapproval fall apart after someone said it was fine?

2 comments

2 Comments

craig.grant1d ago

I asked why he didn't catch that on the call. He said 'it's a different department.'" Look, that's a real pain but honestly it sounds like you got caught in a system that works exactly how it's supposed to. Loan officers tell you what they see on the surface. Underwriting digs into the details. You can't blame the first guy for missing something that's literally not his job. Those two departments aren't sharing notes in real time. The bank's process saved them from a bad loan based on incomplete numbers. It stinks for you but they're not wrong for doing their jobs.

angelafisher1d ago

A buddy of mine went through the EXACT same thing with his mortgage application last year. The loan officer was super friendly and said everything looked great, then two weeks later underwriting flagged a small credit card debt his wife forgot to mention. @craig.grant is right, the bank's system caught it before it became a problem for everyone involved.