Think your mortgage lender is asking a few too many personal questions? Do they have the right to do that? Is that legal? The bottom line is this – if you want to borrow money from their institution, you better answer their questions honestly or you may not get the loan!
All lenders are going to verify employment, so they need employment information. Most require two years tax returns also. Lenders document where all of the money in your account is coming from and where it’s going to. All of the information the collect helps the lender prove to the underwriter that you can pay back the loan and will be a good candidate for borrowing money. Even though documents can be forged, some lenders even ask for your diploma to prove you went to a certain school or graduated college. Seems silly, but some do this. If you want the loan, you’ll play the game. All income must be verified and disclosed, even if it’s alimony, child supports, disability insurance, GI Bill, etc. Lenders are looking to prove you have your own down payment money and that you are not borrowing that money from anyone else. The review of your credit history is a given. Lenders calculate your debt to income ratio to see how much income you have left to pay back your mortgage every month after all of your other bills have been paid. Don’t go car shopping when you’re trying to get a mortgage, because that lender will want to know why there’s a car dealership inquiry on your credit. If you are involved in any type of lawsuit, your lender will want to know about it. Lawsuits are costly and that might make it hard for you to repay a loan, so that impacts your ability to get a mortgage. In cases where there has been a divorce, lenders are careful that the borrower will continue to have their same level of income in the future.
If you do not feel comfortable discussing your personal finances with your lender, you may need to find a new lender that puts your mind at ease. Getting a mortgage should not be painful. It’s a process and you and your loan officer will need to work as a team to document your financial information so that you can borrow the amount of money you need to borrow to be able to get the home that you want.
At Register Real Estate Advisors, our in house lenders work hard to help you get the loan that you need on the home that you want. Contact Allen Harry or Jeff Wagner today for your pre-approval. Then let one of RREA’s highly trained agents show you the way to your new home! 281.288.3500