Before signing the mortgage deal and lending you a big fat loan, a mortgage lender will ask you a series of questions. These questions will range from good to awkward and totally nosy. However, if you want to avoid answering unnecessary questions, you must learn about the questions that a lender can and cannot ask under the law.
Questions that can be asked
- Income – Your lender will ask you about your current income to ensure that you are employed and earning well. They will also ask you about your income from your previous job (if any). You will also need to give information about child support and social security if you receive any. If you generate income from multiple sources, your lender might ask for details on all of them. They will also ask for proof of your income.
- Credit History – Because credit history plays a vital role in determining whether a person is capable of handling a mortgage or not, lenders will ask you to submit a copy of it.
- Assets – Lenders will require information on your assets to ensure that you are paying on your own.
- Employment History – You will also be asked to submit documents proving that you have been employed for at least two years. Lenders will also ask you about your education and the contact details of your employer for verification.
- Debts – Lenders want to ensure that they are lending money to someone who has a good record of debt payment. Therefore, there is a high chance that your lender will ask you about your debt history and ask you to submit your credit history.
Questions that cannot be asked
Lenders are prohibited to ask certain questions from applicants by law. These laws are laid in place to protect consumers from any type of discrimination, hate, etc.
- Divorce – Many lenders ask personal questions about divorce to find out if they are in the middle of a divorce. The reason behind asking about divorce is to find out whether the applicant will lose all their money or not.
- Ethnicity – It is illegal to ask questions about ethnicity from any borrower. There are strict laws against such questions and inquiries to ensure that no one gets discriminated.
- Family – Lenders cannot inquire about your family. Whether they are asking questions about your family members or simply asking if you will be starting a family, it is illegal for them to do so. Many female borrowers have faced discrimination when they told lenders about starting a family.
- Lawsuit – If you are part of a lawsuit, lenders cannot ask you about it. The reason that lenders are prohibited from asking about lawsuits filed against borrowers is that it may harm the final judgment and may cost them money.
Now that you know what questions your lender can and cannot ask you, you will be able to take control of your interview.…