As home prices soar and mortgage rates remain high, mortgage lenders are turning to social media platforms like LinkedIn to get a more comprehensive understanding of potential borrowers.
As home prices soar and mortgage rates remain high, mortgage lenders are turning to social media platforms like LinkedIn to get a more comprehensive understanding of potential borrowers. This trend is not officially part of every lender’s process but is becoming a common tool in an increasingly competitive and scrutinized market.
With mortgage rates currently at 6.62% for a 30-year fixed-rate loan, many prospective homebuyers face financial hurdles. As a result, lenders are looking for ways to ensure that borrowers can reliably repay loans. Traditional methods of evaluating a borrower's financial history, including reviewing bank statements, tax returns, and credit reports, are still essential. However, lenders are increasingly looking beyond the paperwork to verify employment history and assess a borrower’s stability—tools like LinkedIn are becoming part of this equation.
Kevin Leibowitz, president and CEO of Grayton Mortgage, shared insights with Realtor earlier this month about the importance of social media in the lending process. While Leibowitz clarified that his company does not have an "official" policy for checking LinkedIn accounts, he emphasized that it can be a valuable resource in understanding a borrower’s full employment history. "It is helpful to look at LinkedIn profiles during the application process," Leibowitz stated. "It can give a clearer picture as to the job history, description, length of employment, locale, etc."
The idea is straightforward: borrowers often fail to provide a comprehensive account of their work history, either out of oversight or intentional omission. LinkedIn, with its detailed records of work experience, job titles, and career progression, can help fill in any gaps in a borrower's application. In this way, LinkedIn serves as a kind of digital resume that lenders can turn to when assessing the applicant's professional background.
However, the use of LinkedIn is not limited to confirming job titles or dates of employment. Lenders are also using the platform to better understand the context of a borrower’s career, such as company affiliations, job stability, and professional trajectory. A strong LinkedIn profile that reflects consistent employment with respected companies might enhance a borrower’s appeal, while an incomplete or inconsistent LinkedIn profile might raise questions about their work history.
This practice highlights the increasing role social media plays in modern financial decision-making, particularly in industries like real estate, where a person’s financial credibility is essential. For borrowers, this means being mindful of how their LinkedIn profile reflects their career history. Mike Olson, a senior underwriter at Second Street, advised potential borrowers to ensure that every detail on their LinkedIn profile matches what is on their loan application. This includes job titles, locations, and employment dates.
But it’s not just about matching details; Olson also suggests that borrowers should be cautious about the content they share on LinkedIn. For instance, posts related to financial stress, job loss, or any negative comments about financial stability could raise red flags for lenders. Lenders may interpret these posts as indicators of potential risk, even if the borrower’s formal application checks out. A LinkedIn profile that reflects stability, professionalism, and career growth will likely be more attractive to lenders.
For those actively applying for mortgages, this shift in lending practices means it's more important than ever to manage your online presence. While maintaining an up-to-date and professional LinkedIn profile is always a good idea, borrowers should now consider how their digital footprint could impact major financial decisions. As lenders continue to adapt to the digital age, it may be wise to ensure that all aspects of your social media reflect consistency and professionalism, especially when seeking large loans like a mortgage.
With the median price of a home in the U.S. reaching $419,200 in the last quarter of 2024—up from $338,600 in 2020—homebuyers are facing increasingly stringent requirements to secure financing. As such, every detail, both online and offline, could influence a lender’s decision. Understanding that mortgage lenders are taking a closer look at LinkedIn profiles could be a crucial step for borrowers hoping to strengthen their loan applications in a tough housing market.
Business News
After 25 years, the U.S. will welcome a brand-new, large-scale theme park, as Universal's Epic Universe is set to open its gates on May 22, 2025, in Orlando, Florida.
By MICAH ZIMMERMAN
Starting a Business
Hilary Hoffman’s journey from a side hustle to a thriving $10K-a-month business didn’t involve flashy marketing or public attention.
By MICAH ZIMMERMAN
Growing a Business
