What Borrowers Should Know About ChatGPT and Mortgages
By Cat Totty | The Totty Team at Cardinal Financial
Let me start with an example most of us can relate to.
You get a new dog and ask ChatGPT, “How do I walk my dog?”
You don’t mention the dog’s size or weight.
You don’t mention if it’s a puppy or older.
You don’t mention if it has anxiety, a bad hip, or is scared of new places.
ChatGPT gives you very basic, general instructions. You follow them… and everything goes wrong.
Not because the information was bad — but because important details were missing.
When something is new to you, providing full context is critical to understanding whether the answer actually applies to your situation.
Mortgages work the same way.
ChatGPT Is General — Mortgages Are Personal
I’ve had several clients use ChatGPT to ask mortgage-related questions. Some have sent me screenshots or messages that start with:
“ChatGPT said I could…”
“ChatGPT told me this shouldn’t be an issue…”
And while being informed is a great thing, the answers are often not accurate for their specific transaction.
That’s because ChatGPT can only give general information based on limited inputs. Mortgages, on the other hand, are highly personal and depend on details like:
Income type and stability
Credit profile and history
Debt ratios
Property type
Location and state-specific laws
Loan program guidelines
Timing in the transaction
Without all of that context, the answer may sound right — but still be wrong.
Where I See ChatGPT Go Wrong for Borrowers
Here are some common areas where AI-generated mortgage answers can cause confusion:
Loan Program Assumptions
ChatGPT may say a loan program allows something — but that doesn’t mean:
You qualify for that program
The property qualifies
The investor allows it
The timing works
Guidelines vary by lender, loan type, and scenario.
State-Specific Rules (Texas Matters Here)
Texas has unique lending laws, including:
Community property rules
Property tax structures
Homestead protections
Required disclosures and waiting periods
ChatGPT often gives national-level answers that don’t account for Texas-specific rules.
Oversimplified Credit and Income Answers
AI responses tend to be clean and simple:
“If your credit score is X, you qualify.”
In reality, lenders review:
Payment history
Trade line depth
Income consistency
Documentation requirements
A single number rarely tells the full story.
Timing and Process Confusion
I’ve seen borrowers told by AI that something can be done “later” — when in reality it must happen before a certain step in the loan process.
Timing matters. Missing a step can delay or even derail a closing.
How ChatGPT Can Still Be Helpful
ChatGPT isn’t a bad tool — it just needs to be used the right way.
It can be helpful for:
Understanding basic mortgage terms
Learning general differences between loan types
Getting high-level explanations
Helping you think through questions to ask
Used this way, it can actually improve conversations with your lender.
The Bottom Line: Always Verify With Your Loan Officer
Here’s what I tell clients:
Use ChatGPT to learn, not to decide.
If you see something online or from AI that raises a question, bring it to your lender and ask:
“Does this apply to my loan?”
A good loan officer will explain:
Why it does or doesn’t apply
How it impacts your transaction
What options actually make sense for you
That human guidance matters.
Why Working With a Mortgage Expert Still Matters
AI can’t:
Review your documents
Coordinate with your real estate agent
Adjust strategy during underwriting
Apply Texas-specific lending laws
Advocate for you when challenges come up
That’s where experience and local knowledge come in.
How The Totty Team Helps Borrowers Navigate Information Overload
At The Totty Team at Cardinal Financial, we welcome questions — even ones that start with “I saw this online” or “ChatGPT said…”
Our role is to help you:
Filter general information into what applies to you
Avoid costly misunderstandings
Make confident, informed decisions
Move forward with clarity instead of confusion
Technology is helpful. Expertise is still essential.
Thinking About Buying or Refinancing? Let’s Talk.
If you’re researching mortgages online or using AI tools to learn more, that’s smart — just don’t stop there.
If you’re buying or refinancing in Central Texas, I’m happy to help you verify what applies to your situation and create a plan that actually works.
Cat Totty
The Totty Team | Cardinal Financial
Because the best mortgage decisions are made with information and experience.
