Things Lenders Can’t Ask You
We’ve talked here before about the types of questions you can expect to be asked when you begin to complete a loan application. Along with this, we explain why the lender asks the things it does and the proper types of answers that may fit your situation. Lenders can certainly ask about your social security number, employment, income and how much money you have available to close the transaction, among others.
These are all perfectly legitimate queries designed to help the lender put you in the mortgage program with the best fit for you. But on the flip side, let’s talk about the types of questions lenders are forbidden to ask. If some of these questions do in fact come up, it’s time to get up from the table and walk away.
As a woman, do you plan to get pregnant soon or are you already pregnant? This question is way out of bounds. The lender may want to know whether or not there will be another mouth to feed along with the associated expenses of raising a child that may be on the way. These new outlays could affect your ability to handle your debts. It’s none of the loan officer’s business.
Are you ill or do you have any sort of disability? Similar to whether or not you might have a new child on the way, having some sort of disability is a non-issue. Whether or not someone does in fact have some sort of disability, it’s a non-factor when it comes to qualifying for a home loan. As long as someone meets the standard criteria for obtaining a mortgage, whether or not there is a disability or illness doesn’t matter.
Will you retire soon? This follows along the lines of whether or not there will be sufficient income to pay the home loan down the stretch. The fact is that when an application is submitted, the file is analyzed based upon the current situation at that time, not any ‘what if’ situation somewhere down the road. While this question isn’t specifically prohibited from being asked, it’s of no consequence and should be ignored.
Is there any other income that you have coming in? Again, while this isn’t against the law, if you already qualify for the home loan with the income listed on your application, there’s no need to disclose whether or not there is any other income stream. If you do bring something up, the lender may ask for more information, such as the source. You’re not required to disclose any additional income if you’re qualified as it is.
If you’re speaking with your loan officer and any of these questions come up, it’s time to walk from the interview, but not before you speak with the manager of the office about the situation. Some of these queries are illegal.
Written by David Reed for www.RealtyTimes.com Copyright © 2023 Realty Times All Rights Reserved. Reed is from Austin, Texas and is the author of The Real Estate Investor’s Guide to Financing, Your Guide to VA Loans and Decoding the New Mortgage Market. A Senior Loan Officer and Mortgage Executive for more than 20 years, he has also appeared on CNN, CNBC, Fox Business, Fox and Friends and the Today In New York show.
