extra bathroom and conventional loan

[Dan T.]

Hello Folks,  I looking to buy a single family home (contract is going back and forth). I am going in with 20% down conventional loan, but its a bit of a fixer with a lot of cosmetics that need to be done, but is livable and owners are living in there.  When inspecting the basement I noted an extra (illegal) bathroom that is being used as storage and hasn't been used in decades by appearance. Its not on record, but home is being listed as a 1 bath home. My questions, how much of an issue is this going to be for the lender. I have not started shopping for mortgage yet, but was thinking of going with my present lender (wells fargo) on my MFH, or would I have a better chance with a broker. I dont want to get sold on some other type of loan, i have good credit (730+). Also we are not talking about a high priced home for the location, its a good value. I would appreciate any input, home is located in a nice town in Westchester County, New York if anybody has had experience. Thanks for looking at my post.