Why do lenders ask so many questions?

Lenders main objective is to make sure the individual is qualified prior to searching for a home. The main reason lenders ask so many questions upfront is because they want to make sure they have as much information as possible in order to know which loan programs the borrower may qualify for and is best for their unique financial situation.

Some of the questions lenders will ask during the pre-qualification process are:

Contact information: Contact phone number and emails
Personal information: name, address, birthday and social security number
Job Information: Who do you work for, what is your job function, how long have you worked there, how long have you been in this line of profession.
Income Information: What is your gross income?
Debt Information: What are your monthly debt obligations? Credit cards, car loan, personal loan, child support… etc.
Assets: How much do you have in your savings, checking, IRA, brokerage accounts, and cash?
Credit Scores: When was the last time you ran your credit report? How were the scores? Do you have any current or past delinquencies, any liens or bankruptcies?
Down Payment: How much do you plan to put down? Which bank account will money be drawn from? Will it be gift money?
Who else will be on the loan?

All these questions are important to a successful qualification of a loan. They allow the lender to see what potential red flags may come up. For example, cash is always a concern to lenders as it can not be documented. So if you have cash in a bank box, take it out and deposit it into your bank account (remember, it’ll have to be in your account for at least two months).

Good luck in your pre-qualification process. If you already have been pre-qualified and would like to get pre-qualified again, please contact me at 808-561-5943 or email me at lle@pacificaccessmortgage.com.

- Linda Le, Loan Officer, Pacific Access Mortgage