What I actually look for when you apply for a loan — and why it's a lot like tending a garden
Every underwriter starts with the same question a gardener asks: what am I working with? Before I can tell you whether your loan has a chance, I need to understand the ground beneath it.
When you walk into my office in Rexburg — or send your file electronically — you're probably thinking about the big number: the loan amount. I can't help but think of people planting tomatoes in concrete and being surprised when nothing grows. The amount matters, but the foundation matters more.
Every loan application rests on three pillars. I explain this to every client, usually with a cup of tea between us, because it helps to slow down:
W-2 workers have it easier — but "easier" doesn't mean automatic.
Your debt-to-income ratio (DTI) is the climate your loan has to survive in. It's the percentage of your gross monthly income that goes toward existing debt payments. Think of it like this:
If your income is a river, your DTI is how much of that water is already flowing to other destinations before it reaches your new loan.
Conventional lenders generally want your back-end DTI (total monthly debt obligations divided by
gross monthly income) below 43%. Some programs go higher. The key question I always ask:
If your car broke down tomorrow and cost $300 to fix, could you absorb that without missing a payment?
That's the real test. Not the spreadsheet. The "what if."
I've sat across from people who brought in their papers shaking. Not from cold — from fear. The fear of hearing "no" to something that feels like the difference between floating and sinking. Here's what I want you to know: a preliminary conversation with me — before you ever file — costs you nothing and can save you months of work on an application you'd have to revise anyway. Call the credit union. Ask for a pre-screen. It's like checking the soil pH before you plant.
Patience is the most underrated financial skill. If you're planning to apply for a mortgage in the next six months, here's what you should be doing right now:
I think of it like preparing a canvas. You can't paint a good landscape if you're still stretching the canvas and mixing your pigments at the same time.
This job has taught me something I never expected: that financial literacy is an act of kindness. Not just for the borrower — though that's the obvious part — but for the whole community. When someone understands what they can actually afford, they don't become a risk on a balance sheet. They become a neighbor who stays put. Who fixes their roof. Who joins the PTA. Who buys coffee at the same shop every morning for ten years.
That's the real return on good underwriting. It's not in the numbers. It's in the streets.