Deal Killers:
Borrower & Documentation Deal Killers
The issues most likely to create delays, conditions, and denials.
Occupancy Concerns
Underwriters often review:
✓ Borrower intent
✓ Property location
✓ Ownership patterns
✓ Existing housing situation
Occupancy must make sense.
The file should tell a logical story.
Common mistakes include:
✓ Counting ineligible assets
✓ Failing to document reserves properly
✓ Overlooking portfolio requirements
✓ Not verifying statements up front
Reserve Requirements
Source of Funds Issues
Large deposits and unexplained funds frequently create underwriting questions.
Review early:
✓ Earnest money
✓ Down payment funds
✓ Gift funds
✓ Large deposits
✓ Foreign assets
Missing:
✓ Bank statements
✓ Asset statements
✓ Business documents
✓ Ownership records
✓ Required explanations
This creates unnecessary conditions later.
Many delays are self-inflicted.
Incomplete Documentation
One of the most common issues in lending.
Undisclosed Debt
Examples include:
✓ Recently opened accounts
✓ Student Loans (Even if deferred)
✓ Co-Signed car loans
✓ Mortgages that don’t show on credit. (Private / Hard Money)
Always review credit carefully before structuring the loan.
Coaching Note:
Most files do not fail because of one major issue.
They fail because several small issues combine to create uncertainty.
The cleaner the file, the smoother the approval.
Before Moving Forward:
Next, we'll review property and transaction issues that frequently create surprises later in the process.