Mortgage Monday: 8 Mortifying Questions You'll Be Asked When Applying for a Mortgage


Buying the 'Burg note:

If you're a first time home buyer you may not know just how much goes into getting a mortgage for the purchase of a home. If you'll be needing a mortgage to pay for your new home, you'll want to get working on getting approved right away. I can refer you to a fantastic lender who can get you a pre approval in just a day or two. Most of the time you're going to need that to submit an offer on a property. It just makes good sense to have your pre approval ready so when we find you just the right house, you can get it under contract before someone who was more prepared beats you to it.

If you need a mortgage to buy a home, rest assured: Prospective lenders will ask you a lot of questions. After all, loaning someone money is a risky proposition, so they'll want some assurance you'll pay them back!

So what questions might they ask you? Allow us to outline the most common queries during a consultation, and to tell you what constitutes a decent answer—and what doesn't. That way, your mortgage pre-approval process won't be derailed by any big surprises.

Ready? Make sure you have answers to these questions before you start the loan application process.

1. What is your credit score?

For starters, let's look at your credit score—the numerical representation of how well you've paid off past debts. If you're in the dark on what your credit score is, get your score for free at CreditKarma.com, or your full report at annualcreditreport.com. You may also be able to get a free score through your bank or credit union, or another financial institution.

Lenders typically offer the best interest rates to customers with the highest credit scores, generally 750 and above. Yes, you may get a loan without a good credit score. But you'll pay higher interest rates if you do. Try to improve your score before you apply for a loan.