Your mortgage lender will want to know a lot about you before approving your loan application, and justifiably so; it and its underwriters want to be assured that you meet their minimum level of creditworthiness before lending you money.
Here are the general areas of questioning you can expect from a lender:
1. Where do you work?
2. How much do you make?
3. How long have you been at your job?
4. How is your income derived -- steady salary or irregular income?
5. If it's the latter, you may need to provide more details to obtain a favorable interest rate.
1. What recurring debts do you have?
2. How much do you pay a month for auto loans?
3. Credit cards?
4. How much of your monthly pretax income do these debts consume?
1. How much money do you have in the bank?
2. How much will be left after you pay your down payment and closing costs?
1. How much money are you putting down?
2. Is this your own money?
3. If not, is it a gift from your parents?
4. A nonprofit agency grant?
1. Is this mortgage for a home buy or refinance?
2. If it's a refinance, do you want to take cash out at closing to pay off other debts?
3. If so, how much?
1. Do you plan to live in the house?
2. Is it investment property?
1. A condominium?
2. A duplex?
The following responses tend to work in your favor:
These responses tend to work against you:
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A bunch of agencies are trying to expand the number of would-be homeowners who can qualify for mortgages. But I'm skeptical that these efforts will help many people.
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