What not to say to a mortgage broker? (2024)

What not to say to a mortgage broker?

You don't want to tell the mortgage lender that the house is in disrepair. You also don't want to suggest you don't know where your down payment money is coming from. Finally, don't give your lender reason to worry if your income will stay stable.

What not to tell your mortgage broker?

You don't want to tell the mortgage lender that the house is in disrepair. You also don't want to suggest you don't know where your down payment money is coming from. Finally, don't give your lender reason to worry if your income will stay stable.

What should I not tell a loan officer?

If you mention a side deal to your lender, it's going to raise major red flags. But don't withhold the info, either—if you do and you're found out, you could be charged with mortgage fraud, and that's a felony.

What to do before speaking to a mortgage broker?

Obtain a copy of your credit report and review it for accuracy. If there are any discrepancies, address them before meeting with a mortgage broker. Additionally, be aware of your credit score, as it can influence the interest rates and loan options available to you.

What do you say to a mortgage broker?

What looks bad to a mortgage lender?

Racking up Debt

Your debt-to-income ratio – or how much debt you're paying off each month in comparison to how much money you're making – is just one factor that lenders look at when reviewing your mortgage application. If it's above a certain threshold (typically 43%), you'll be considered a risky borrower.

What not to say to a lender?

Can loan officers see your bank account?

Yes. Most mortgage lenders will require borrowers to submit bank statements when submitting a home loan application. In addition to your overall account balances, bank statements provide an overview of your monthly transactions, whether it's income, debt payments or other types of expenses.

Do loan officers look at your bank statements?

One of the most crucial steps you'll need to take is to submit bank statements for your mortgage application. As tedious as it is to track these down, bank statements provide an important window into your financial situation and help lenders determine whether or not they should approve you for a home loan.

How do I prepare for a meeting with a mortgage lender?

Almost everyone, however, will be ask to provide proof of your identity, proof of your income, assets, debts, taxes, property details of the home you are looking to buy, and any other financial obligations that you have. Usually, you will need at least two month's worth of pay slips and bank statements.

Is it worth talking to a mortgage broker?

Many individuals prefer to work with a broker regardless of their situation because it gets them access to lenders they wouldn't think to look for. Mortgage brokers may also be able to help loan seekers qualify for a lower interest rate than most of the commercial loans offer.

Is it best to talk to mortgage broker or bank?

he choice between a mortgage broker and a bank depends on your personal preferences and needs. Mortgage brokers can offer more loan options because they work with multiple lenders. Banks, on the other hand, provide their own loan products but may have more rigid guidelines.

Does it cost anything to talk to a mortgage broker?

So how much does a mortgage broker cost? In a nutshell, using a mortgage broker does not cost you a thing but does provide you with a considerable advantage with respect to understanding your options, shopping around for the best rates, and making sure your financial objectives are being met.

What will a mortgage advisor want to know?

Lenders are trying to assess if you can afford mortgage repayments, so they'll ask you about your income (the money you have coming in) and expenses (the money you're likely to spend). They're likely to ask about outstanding and ongoing payments, including: credit card and loan balances.

How many mortgage brokers should you talk to?

Contact at least three lenders on your list. Don't stop with just one lender! By exploring your options with multiple lenders, you get more information about your options and get a sense for which loan officers you might feel most comfortable working with.

What questions should you ask your mortgage advisor?

What is a red flag in mortgage?

High-level Red Flags

Social Security number discrepancies within the loan file. Address discrepancies within the loan file. Verifications addressed to a specific party's attention. Verifications completed on the same day they were ordered.

What are red flags on bank statements?

Red flags on bank statements for mortgage qualification include large unexplained deposits, frequent overdrafts, irregular transactions, excessive debt payments, undisclosed liabilities, and inconsistent income deposits, which prompt lenders to scrutinize the borrower's financial stability and may require further ...

What is a red flag on a loan application?

12 red flags for loan application fraud

1. Forged or Altered Documents: If the submitted documentation, such as pay stubs, bank statements, or tax documents, appears to be forged or altered, it's a clear indication of potential document fraud.

What question is a lender not allowed to ask?

Be prepared to answer questions regarding your income, debt, down payment amount and more. You'll need to back up your answers with documentation. Lenders aren't allowed to ask questions regarding sexual orientation, medical history, disabilities, political or religious beliefs and plans for family expansion.

What are toxic lenders?

Essentially, the lender continues to make money as he converts the debt into common shares — even if the stock is plunging and eventually falls to zero. Toxic financing can come in the form of convertible debt or convertible preferred stock.

What to do before talking to a lender?

Do mortgage lenders look at spending habits?

Will Mortgage Lenders Look at Your Spending Habits? Mortgage lenders might want to look at your spending habits to make sure you can afford to pay the mortgage. To assess this they might ask to see up to six months of bank statements.

How many months back do mortgage lenders look?

Most mortgage lenders typically require 2 or 3 months' worth of bank statements for loan approval. If your bank doesn't send monthly statements, you may be able to submit a quarterly statement.

What credit score do you need to get a mortgage?

The minimum credit score needed for most mortgages is typically around 620.