One Thing Leads to Another

Mortgage and Lending with Guaranteed Rate, Marin County, CA NMLS: 22343

One Thing Leads to Another


It just may be the most frustrating aspect of the home loan process for both borrowers and their real estate agents.  We, the mortgage originator, ask for a specific item, or "condition," required for the loan approval and then upon receipt and review of that item, we come back and ask for something additional.  Wash, rinse, repeat.  One thing leads to another.


Sure we all get why there's grief and consternation associated with this phenomenon.  After all, it feels like a vendetta.  It can get personal.  I've had, on very rare instances, borrowers tell me that they simply refuse to provide a certain item and I know there is a sensitive motivation behind it.  But I believe that if we all, collectively and conceptually, understood what drives our industry, we'd have a better sense of how to work together in the spirit of an efficient loan process.  So I'm going to let you in on a secret about what makes the loan business tick.



In short, the reason for all the fuss is that your loan will likely be "sold."  And the place in which it will be sold is called the secondary market.  Now when a loan is sold on the secondary market, the buyer is simply looking for the facts that make the loan "saleable."  Because the mortgage has likely been restructured as a security, a purchaser is not going to be getting into the nitty gritty of the borrower's situation.  They don't know, and don't care, about "the story" behind the bank statements, the tax returns and any other documentation.  They don't care about the rapport that we had when we worked closed together for 30 days to put you in your dream home and they don't grasp "common sense."  So, maybe an analogy would help.


Let's say you choose only to buy organic meat.  You go into a market and you look for the label that says "Certified Organic."  If the package doesn't have that label, you don't buy it.  You won't ask the butcher why the meat didn't meet the organic standard.  You won't know that on only one day out of the year the cattle rancher slipped up and fed his cattle feed that didn't meet organic standards.  Nope, none of that will matter.  No sticker, no purchase.  And that's sort of the way our industry treats the end loan product.  If we can't, through all of our guidelines, regulations and representations, put a "Saleable" sticker on your loan, it is going to stay on our books.  And when that happens a domino effect of bad things follow.  Less availability of credit, higher costs, stricter guidelines.  Everybody loses.


Now we don't expect our clients to be martyrs for the next guy.  We try to eliminate required items up front and there are a lot of best practices that help us do so.  But remember, if you're in the loan process and being asked for additional support, it's not because we're trying to make your life difficult, instead we're trying to help your loan find a home in the secondary market of the future, just as you're trying to find a home in your local market today.


Reach the beach, 



Robert J. Spinosa
Vice President of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 Fax: 415-366-1590

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate's Human Resources Department.


Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood ChicagoIL 60613 - (866) 934-7283


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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

So informative, Rob and certainly feature worthy. This should help buyers, as well as agents, understand why you may want additional information. I'm sure that there are many who aren't aware of what happens to a loan.

Oct 26, 2018 07:10 PM #4
Andrea Bedard
Thompson Company, REALTORS® - Silver Spring, MD
M.A.; REALTOR® Silver Spring, MD and beyond

That is a great analogy Rob and, yes, it helped me understand it much better. I've always just looked at "it is what it is.. the end result makes it well worth it" and tell my buyers just that. When you prepare them ahead of time what they can and should expect ("everything but your death certificate"), it is much easier!

Oct 26, 2018 08:09 PM #5
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Rob Spinosa 
Great and clear explanation. Thanks. Always easier to to supply needed info when the motivation for asking is clear. All the best - Lynn

Oct 26, 2018 09:48 PM #6
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

If you can keep at it long enough, one thing leads to another and you will get business based on that very particular momentum.

Oct 26, 2018 10:52 PM #7
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

It’s always good to be clear and concise and to your exact point so that your client has no way of being fuzzy on any details. Lynn B. Friedman

Oct 26, 2018 10:55 PM #8
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

That picture is intense....  I always tell the buyers we must feed the lender all the paperwork until they are full... and some lenders have a hollow leg... 

it can be brutal.

Oct 27, 2018 01:12 AM #9
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH

Great blog!!!

If you're in the loan process and being asked for additional support, it's not because we're trying to make your life difficult, instead we're trying to help your loan find a home in the secondary market of the future, just as you're trying to find a home in your local market today.

Oct 27, 2018 04:02 AM #10
Dorie Dillard CRS GRI ABR
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Rob Spinosa,

Love the post and glad to see it featured! One thing does lead to another and your analogy is sound and easy to interpret!

Oct 27, 2018 04:37 AM #11
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Rob leads the way

Oct 27, 2018 06:10 AM #12
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I so like how you include the hard truth of why they are asking fo rsome many things. I like to prepare my buyer from teh start that they may and most likely will ask, so be ready, do it quickly and be thank full they did not say no

Oct 27, 2018 06:51 AM #13
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Rob

Well that certainly explains a lot in a way anyone can understand. It's best to know the reality.


Oct 27, 2018 08:01 AM #14
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

A few years ago I had a buyer who was furious at the lender for all those additional requests. I thought his head would explode he was so frustrated. I wish I had had this easy-to-understand explanation at that time!

Oct 27, 2018 08:22 AM #15
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Such a common sense way to follow the "whys" of all the annoying loan requests. :)  I am going to save this one...just in case somebody gets frustrated. 

Oct 27, 2018 05:35 PM #16
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Thank you for the great explanation.  I believe it's all about educating our buyer clients so they are not caught unaware ... If they know those "unexpected" things may happen and they are "expecting" the call -- it can go much smoother.

Oct 28, 2018 04:53 PM #17
Anne Corbin
Long and Foster - Lake Anna - Spotsylvania, VA
Serving Lake Anna & Central Virginia

Thank you for clearing that up for the non-mortgage professional. I do have clients say that it is frustrating to provide so much documentation.

Oct 28, 2018 05:50 PM #18
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

This is a great explanation for buyers as to  why they are being tormented by their lender - THANK YOU! 

Oct 29, 2018 06:49 AM #19
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Rob Spinosa ~ great lending info and awesome video... I really enjoyed the opening of the video, very cool

Oct 29, 2018 08:28 AM #20
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

When we as agents understand the parts of a transaction we can help the consumer to understand the process. The goal is a successful and peaceful conclusion.

Thanks for the great explanation.

Oct 29, 2018 10:41 AM #21
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

That was a really good explanation and analogy with the sticker on the meat.

Oct 30, 2018 12:09 PM #22
Elisa Uribe Realtor #01427070
Golden Gate Sotheby's International - Oakland, CA
Opening the Doors to California Homes -East Bay

Great analogy! It's a great reference for my buyers! Cool video as well

Oct 31, 2018 05:40 PM #23
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Rob Spinosa

SVP of Mortgage Lending, Marin County
Can I Get a Jumbo Loan with 10% Down?

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