Questions Your Mortgage Lender Will Ask: Insights from a Mortgage Company in Urbana, Illinois

Are you planning on buying a home in Urbana, Illinois? It can be a daunting task. Finding a home can take time and effort. Not to mention the questions to be answered and paperwork to be completed. When you decide to buy a home, you should get your finances in order. As you are looking for your new home, you can meet with mortgage lenders to obtain quotes and get pre-approved.

When you apply for a mortgage, your lender will need to gather a lot of information from you. Some of the questions your lender asks during this “risk assessment” may catch you off guard, so knowing the types of questions they will ask you is crucial. Without further ado, here are some of the most common questions that your mortgage company in Urbana, Illinois will ask you:

Question 1: Are you single, married, or divorced?

Your mortgage lender in Urbana, Illinois needs to know the answer to this question for many reasons. If you are married, your spouse’s income can contribute to your household earnings and credit, securing you a better mortgage. Or perhaps your spouse is a veteran or active service member, making you eligible for a VA home loan. If you are divorced, your mortgage lender may want to ensure that any child support, alimony, or other debts owed by either party are fully accounted for.

Question 2: Are you in good health?

If your mortgage lender asks you this question, find another one. The Fair Housing Act and the Americans with Disabilities Act (ADA) prohibit lenders from discriminating against ill, disabled, or elderly borrowers, even if they are 90 years old and applying for a 30-year mortgage.

Question 3: How old are you?

Although it is illegal to discriminate against borrowers based on their age, one must be at least 18 years old to take out a mortgage and bear responsibility for that debt. Your mortgage lender only needs to ensure that you are legally old enough for this responsibility.

Question 4: How many children do you have?

This is another important question that your mortgage lender may ask, and it is well within their right to do so. Children affect the residual income your home has, and that may change your loan availability.

Question 5: Are you planning to have children?

Per the Equal Credit Opportunity Act, mortgage lenders are not allowed to ask about family planning. They cannot inquire whether either or both parents plan to continue working after the birth of their child either.

Question 6: What ethnicity are you?

Your mortgage lender can ask this question, but it is well within your rights to not answer. This information is collected and reported to the US government to help protect against racial discrimination across the country. Statistical analysis assists researchers in determining whether some racial minorities are denied mortgages more often around the country or in isolated areas. By sharing this information, you can help fight against prejudice patterns — but if you want to keep it to yourself, you have every right to do so.

When looking for a mortgage in Urbana, Illinois, it is vital to understand your rights. If you are asked an inappropriate question, it’s best to report it and look for a different mortgage lender.

Are You Looking for a Mortgage Lender in Urbana, Illinois?

If you are looking for an experienced and licensed mortgage lender in Urbana, Illinois, look no further than Compass Mortgage. Contact us at (833) 638-7836 or submit a form through our website to learn how we can help you.

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