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Are mortgage lenders reviewing your LinkedIn profile?
In the current financial climate, characterized by elevated mortgage rates—hovering around 6.62% for a 30-year fixed-rate loan—and increasing home prices, lenders are increasingly utilizing social media platforms such as LinkedIn to gain deeper insights into potential borrowers.
Kevin Leibowitz, CEO of Grayton Mortgage, mentioned in a recent discussion with Realtor that while there isn’t a formal procedure for assessing borrower social media, many lenders might conduct informal checks.
“Reviewing LinkedIn profiles can be beneficial during the mortgage application process,” Leibowitz noted. “It offers valuable insights into job history, responsibilities, duration of employment, and geographical location.”
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This approach can be crucial, especially since “occasionally, borrowers fail to provide a comprehensive view of their professional history,” Leibowitz added. By examining LinkedIn, lenders can bridge the gaps and construct a fuller profile of the applicant.
Although lenders commonly review bank statements, credit reports, and tax returns to evaluate a borrower’s financial background, perceptions formed via social media can also influence their decision-making.
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So, how can borrowers enhance their chances of securing a loan? Mike Olson, a senior underwriter at Second Street, advises that every detail on a LinkedIn profile should correspond with the information provided in the loan application—same job titles, dates, and locations included.
Olson also cautions against sharing posts that may trigger concerns, such as those discussing financial hardships or employment issues.
As a reference point, the median home price in the United States for the last quarter of 2024 reached $419,200, a significant increase from $338,600 in the same quarter of 2020.
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