Applicant has existing mortgage, Reason for denial?

[Tom W.]

I have a applicant who makes good money, owned home for past 15 years with existing mortgage. Supposedly in process of selling home, but its not listed and when I ask for documentation to show its for sale or under contract, he wouldn't provide anything or further explanation. With no proof that he's selling home I have to look at the mortgage/prop taxes/insurance when considering his ability to cover rent. Also, I've had tenants in the past who leased property for a relative or used the property for airbnb.

I'm leaning towards declining app. He has good credit with solid employment and income, but the early uncooperation seems like a red flag. Is this a legit reason to decline app and what's a good way to word it? Just got done dealing with a lawsuit last year and don't want to get into another mess.

Thanks

[Colleen F.]

@Tom W.  could be a divorce or similar situation. People are very funny when this happens, they don't like to tell you their personal situation.   Could he cover both? If not then his debt burden is too high and you turn him down based on that.  (basically if you require so much income, could consider mortgage bill an obligation that comes off the income). That has to be part of your criteria though.