Can a pending misdemeanor prevent you from getting a mortgage?

[Brian S.]

Greetings,

I am currently in the process of purchasing a rental.  I was just notified as my contract went into underwriting that I need to clear this case I have against me before we can proceed with the mortgage by the title company. 

The issue is, this is a criminal case that I was planning on pleading not-guilty too.  I haven't even had a pre-trial yet to say that I plead not-guilty, let alone go to trial and explain my case.   I spoke with both the courthouse and my attorney and they both said this was peculiar and shouldn't be preventing me from getting a loan.  Has anybody else heard anything like this?  It just seems like being charged shouldn't be enough to prevent you from getting a loan since I haven't even made it to court yet. 

Thanks for taking the time to reply! 

[Jassem A.]

I have never heard of a mortgage lender doing a background check. I would think approval is simply based on credit, income, and reserves. Here's something I found:

"Most lenders do not conduct criminal background checks on mortgage applicants. However, they will run your credit score, verify your income and verify your residency for the past 10 years or so. If you’ve been in jail within the time frame your lender examines, your past will more than likely come up. And since lenders want to loan money to people they consider less of a financial risk, the more time you spent in jail, the less time you have establishing a solid work and savings history."

I would take my business elsewhere