Homebuyers

Nine Mortgage Lenders Rejected This Technician Before He Finally Became a Homeowner. This Is How He Did It

When environmental technician Adam Sanchez, 47, decided he wanted to buy a home for his family, he couldn’t imagine he would be rejected by nine mortgage lenders before his dreams of homeownership would be realized.

The first-time homebuyer had strong credit and a stable income. He was already paying $2,495 a month in rent in Santa Ana, California, for himself, his wife, and two children. He was confident he could afford a mortgage payment in Moreno Valley, California, where homes were cheaper.

However, he was rejected by nine different mortgage lenders. The tenth would only approve him for a $200,000 loan, which was lower than he needed to purchase the right home.

The lenders cited issues like insufficient earnings and his higher debt-to-income ratio (DTI).

"It was really frustrating because I knew I had the financial stability, but I just couldn't find anyone to help me," Adam Sanchez said. "I remember thinking, 'What do I need to do? Just tell me, and I'll do it.' But no one could give me a clear answer."

When a friend introduced Adam Sanchez to a new loan officer, he was skeptical. But this lender did something different: She listened to him.

How this homebuyer finally got approved for a mortgage

Monique Sanchez, a New American Funding loan officer in Santa Ana, California, did a thorough assessment of his financial situation and asked him lots of questions. She explained that he had been denied for previous loans because he didn’t have enough money saved for a down payment and closing costs.

But she learned that Adam Sanchez's adult daughter, who had a full-time job, could co-sign the loan. That changed his eligibility.

Adam Sanchez also learned about financial assistance programs. He received a $8,000 grant through the NAF Pathway Plus program *. That grant helped cover closing costs, which meant he could save money for improving his new home.

He was pre-approved for a $500,000 mortgage, far exceeding the amounts other lenders had mentioned.

"I was shocked," Adam Sanchez recalled. "It felt unbelievable."

He chose not to live beyond his means

Adam Sanchez worked with real estate agent Armando Olmeda, who specialized in the Moreno Valley. They found a three-bedroom, two-bathroom condo listed at $275,000, but negotiated the price down to $245,000.

After a year-and-a-half of trying to get a home loan, Adam Sanchez closed on the condo in May 2024.

His goal was to feel comfortable with his mortgage payments without stretching his finances too thin and to start building equity.

"I didn't want to live beyond my means," he said.

He credits his homebuying success with working with a real estate team that shared a similar cultural background. They are all Latinos.

"It made a huge difference that everyone involved spoke Spanish and understood my situation," Adam Sanchez explained. "We felt heard and understood throughout the entire process."

Owning a home has brought Adam Sanchez the sense of stability and security that renting never did.

^{Monique Sanchez (NMLS 694900)}

^{*Credit up to $8,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $8,000 in some cases where other concessions have been made to the consumer.}