What should you not tell a mortgage lender?

Asked by: Mr. Lew Considine II  |  Last update: February 9, 2022
Score: 4.2/5 (18 votes)

1) Anything Untruthful
Lying to a mortgage lender can ruin your chances at approval. On top of that, providing misleading info on a loan application is a felony. Welcome to mortgage fraud! You can try to hide certain info, but lenders are required to perform verifications of key financial documents.

What can a lender not ask?

Lenders are not permitted to ask any questions that would discourage an applicant. Further, government regulations prevent mortgage lenders from denying loans based on race, color, religion, national origin, sex, marital status, age, or because you receive public assistance.

Do I have to disclose all bank accounts to mortgage lender?

Mortgage lenders require you to provide them with recent statements from any account with readily available funds, such as a checking or savings account. In fact, they'll likely ask for documentation for any and all accounts that hold monetary assets.

What do you say to a mortgage lender?

Five Things You Need Before You Talk to a Mortgage Lender
  1. W-2 statements from the past two years.
  2. Recent pay stubs that show income as well as year-to-date income.
  3. Proof of any additional income used for loan qualification.
  4. Tax returns from the past two years.

Do I have to disclose all assets for mortgage?

You have to list your assets that are used for your normal financial activities: savings and checking accounts. You have to list all your assets that are being used as the source of the down payment.

What NOT to tell your LENDER when applying for a MORTGAGE LOAN

20 related questions found

How do lenders check your income?

To verify your income, your mortgage lender will likely require a couple of recent paycheck stubs (or their electronic equivalent) and your most recent W-2 form. In some cases the lender may request a proof of income letter from your employer, particularly if you recently changed jobs.

How does underwriters verify your bank statements?

Underwriters look for regular sources of income, which could include paychecks, royalties and court-ordered payments such as alimony. ... If you're self-employed, your lender may ask to see more than two months' worth of bank statements in order to verify your income.

What are good questions to ask a lender?

14 Mortgage Questions to Ask Your Lender — and the Answers You Want
  • Which type of mortgage is best for me? ...
  • How much down payment will I need? ...
  • Do I qualify for any down payment assistance programs? ...
  • What is my interest rate? ...
  • What is the annual percentage rate? ...
  • Are you doing a hard credit check on me today?

What questions do mortgage lenders ask?

Eight questions your mortgage lender will ask – and why
  • How much do you earn? Annual income is a crucial factor for all mortgage lenders as it gives them an estimate of what they can realistically lend. ...
  • Do you have any debts? ...
  • What do you spend your money on? ...
  • Do you have children? ...
  • Where is the property?

When should you start talking to a lender?

Here are five reasons why you should talk to a lender, even if you're not quite ready to buy.
  1. You may be closer to buying a home than you think. ...
  2. You don't need perfect credit to buy a home. ...
  3. A lender can help you create an action plan for improving your credit. ...
  4. A lender can specify what you need for a down payment.

Do mortgage lenders look at your spending?

Lenders look at various aspects of your spending habits before making a decision. First, they'll take the time to evaluate your recurring expenses. In addition to looking at the way you spend your money each month, lenders will check for any outstanding debts and add up the total monthly payments.

Do underwriters look at spending habits?

Banks check your credit report for outstanding debts, including loans and credit cards and tally up the monthly payments. ... Bank underwriters check these monthly expenses and draw conclusions about your spending habits.

Do I have to prove where my deposit came from?

The proof you will be required to supply of the source of your mortgage deposit will depend entirely on where the funds came from. For example, where personal savings are being used, most lenders will ask you to provide 6+ months of bank account statements which demonstrate the funds gradually building up over time.

Do lenders check marital status?

Mortgage lenders rarely verify a borrower's number of dependants or marital status. However, if a borrower was recently divorced, a mortgage lender may inquire about responsibility for certain joint accounts.

Can I lie about being married on a mortgage?

If you lie and complete your mortgage you are committing mortgage fraud which is a federal offense. You could go to prison.

What does a mortgage advisor need to know?

They're likely to ask about outstanding and ongoing payments, including: credit card and loan balances. essential costs (like for groceries and toiletries) personal wellbeing and grooming costs (for example, gym memberships and haircuts)

What should a first time buyer ask a mortgage advisor?

This article provides the questions you should ask a mortgage adviser to fully understand the mortgage details before doing business with them.
  • 1) Are you a regulated broker? ...
  • 2) How much do you charge? ...
  • 3) How much can I borrow? ...
  • 4) How much deposit will I need? ...
  • 5) What type of mortgage would be best for me?

Is it normal for mortgage lenders to ask for more information?

The bottom line is there's nothing unusual about being asked to provide more documents after you submit your application. It's absolutely normal. The key is to be prepared to provide them as quickly as possible, so your loan can close on time. All of this seems very stressful, but it doesn't need to be.

How do I test my loan application?

The assessment can be summarised in these six easy steps:
  1. Initial criteria. We review the application to make sure that the borrower meets the initial criteria. ...
  2. Financial information. ...
  3. Credit checks. ...
  4. Risk Band. ...
  5. Security. ...
  6. Identification.

What's the difference between being prequalified and preapproved?

Prequalification tends to refer to less rigorous assessments, while a preapproval can require you share more personal and financial information with a creditor. As a result, an offer based on a prequalification may be less accurate or certain than an offer based on a preapproval.

What items are needed for mortgage pre approval?

10 Documents Needed For Mortgage Preapproval
  • Personal Identification. ...
  • Social Security Card. ...
  • Pay Stubs. ...
  • Bank Statements. ...
  • Tax Documents. ...
  • Investment Account Statements. ...
  • List Of Monthly Debts. ...
  • Rental Information And Landlord Reference.

Is no news good news in underwriting?

When it comes to mortgage lending, no news isn't necessarily good news. Particularly in today's economic climate, many lenders are struggling to meet closing deadlines, but don't readily offer up that information. When they finally do, it's often late in the process, which can put borrowers in real jeopardy.

Do underwriters call your employer?

An underwriter or a loan processor calls your employer to confirm the information you provide on the Uniform Residential Loan Application. Alternatively, the lender might confirm this information with your employer via fax or mail.

Can I move money before closing?

While it's not a hard-and-fast rule, moving your savings before your home purchase can add extra steps to the mortgage-closing process. I moved my savings when interest rates started falling fast at the beginning of the pandemic in 2020.

How many months proof of income do you need for a mortgage?

Proof of Income for a Mortgage Loan

You'll have to provide your latest pay stubs, as well as two years of tax returns and W-2 forms. Though you must provide two years of tax returns, lenders don't actually require that you be at the same job for two full years.