4 Question for Your Mortgage Pre-approval Interview
So – you’ve completed an initial mortgage pre-qualification and now you’re ready to take the next step and meet with your lender or mortgage advisor for the pre-approval interview. Are you ready? At this stage of the application process your lender will dig into your financial background to ensure that you’re fully capable of making your mortgage payments and that you don’t present too high a risk. Here are a few questions to know before you go.
Do You Have a Specific Home in Mind?
If you’ve already picked out the perfect new home, be sure to bring along some of the details when you meet with your lender. At a minimum know the price range that you’re expecting to buy so your mortgage advisor can find a mortgage that allows you to purchase the home and meet your financial goals.
What is Your Current Income from All Sources?
Income will be the factor in the size of your mortgage, your payment terms and the interest rate you qualify for. If you have a significant income and it’s clear that you won’t have trouble making mortgage payments, you’ll likely qualify for a shortened amortization period that includes a lower interest rate. If you can only afford to make a bare minimum monthly payment you’ll have a longer mortgage term.
Do You Have Any “Black Marks” on Your Credit?
If you have any negative spots in your credit history you’ll want to ensure that you’re able to answer for them, because your lender will certainly ask about them. Be honest and confident, and remember that the lender wants your business as much as you want to receive a pre-approval for mortgage financing.
What Are Your Plans in the Next Five to Ten Years?
Finally, don’t forget that interest rates will continue to fluctuate and that may have an impact on your mortgage in the future. Be sure to share any major financial plans that you have with your mortgage advisor as they can keep you appraised of any refinancing opportunities that come about.
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Posted on February 28, 2015 at 1:45 am by Jim Kapphahn
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