Charlotte Home Financing Articles

Now, what are the types of questions the lender will ask you?

 

Here are the general topics you will be queried about:

1. Net income and current employment
2. Current debts, if any
3. Assets and cash reserves
4. Amount of down payment you can afford
5. Purpose for loan
6. Property type
7. Property use

These are the specific questions you should expect from the mortgage lender, written under each general topic:

Income and Employment

• What is your source of income?
• How much is your salary on an annual and monthly basis?
• What is your job tenure?
• In what form do you get your income? Is it a monthly salary, or does your income vary each month? If you have irregular income like a commission-based salary, or you have your own business, you would need to give more details regarding this so that the lender can calculate the appropriate interest rate.

Current Debts

• What outstanding debts do you have?
• Are these recurring debts?
• How much do you pay monthly for these loans?
• Do you currently have credit cards and are paying these off? If so, what percentage of your monthly gross income goes to paying for these?

More information about Charlotte Real Estate

Assets and Cash Reserves

• How much savings do you have in the bank?
• What current assets do you have?
• How much of your cash reserve will be left after making a down payment for the house? How much will be left after closing costs?

Amount of Down Payment

• What is the amount of the down payment for the house?
• Where did you obtain the money for the down payment?

Purpose for Loan

• Are you refinancing your current house, or are you getting a mortgage to buy a new house?
• If you are refinancing, are you getting cash out at closing so that you can pay your other debts? If so, how much is this cash out?

Property Type

• Is the house a unit in a condominium or a duplex?
• Is it a new house or previously owned?

Property Use

• Are you planning to live in the property?
• Is the property for business or investment purposes?

These are just some of the questions the lender will ask you. It would be ideal if you have these responses:

• Regular employment of two years or more with the same company.
• You should have zero or minimal debt. No recent major purchases.
• Use for property is residence and not commercial.
• Down payment for the house should be at least 5% of the purchase price.
• Bank savings have at least two months worth of mortgage loan after closing.

More information about Charlotte Real Estate

And these are the responses that can decrease your chances of getting that loan:

• Contractual type of employment or self-employed.
• High debt.
• Property is to be rented out or used for vacation purposes.
• No bank savings after purchase of home.
• Down payment is less than 5% and money used is not your own.