5 Personal Questions Every Lender Must Ask

Filed under: Qualifying for a Mortgage Loan

It can be an uncomfortable experience to apply for a mortgage, and many people feel like they are going through an interrogation process. You should expect the lender to ask some questions that might seem quite personal, but it is important that you answer the questions, because withholding information could potentially cause problems with the approval for your financing. These are some of the questions that you can expect in the mortgage application process:

What, Where, Who, Why, When, How-written with Direction boardHow Old Are You?

It is law that lenders are not allowed to discriminate based on age, but they need to know your age for certain parts of the application. It needs to be documented that you are over the age of 18, and the birth year needs to be used for pulling your credit report.

What is Your Ethnicity?

You will be asked for information about your ethnicity, but you don’t have to answer this question if you choose to skip it. The only reason for this question is for government tracking purposes, to ensure that there is no discrimination based on ethnicity.

Are You Married, Single, or Divorced?

Even though this question might seem unrelated to your mortgage, there are actually several ways that your relationship status can impact your mortgage qualification. For example, people who are married might have a second income that could make it easier to qualify for a loan. Or, people who are divorced could be receiving or paying child support or alimony, which can impact the qualification.

Do You Have Any Children?

Household size can affect home loan eligibility in several ways, so your lender will ask if you have any children. You will need to also provide details about the age of each child.

Any Current Lawsuits?

Towards the end of the application, you will see a “declarations” section filled with yes/no questions. One of these questions inquires if you are involved in a lawsuit, because additional information will be needed if this applies to your situation.

If you have any questions about your specific situation or about the mortgage industry in general, please feel free to contact me at any time.

Franklin Loan Center | NMLS 237653
Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, 4131316
For questions or concerns please email info@franklinlc.com