Chris  Schmidt
Chris Schmidt
Owner/Broker

What Not to Say to a Mortgage Lender?

Wondering what not to say to a mortgage lender? While you want to present yourself in the best light to your mortgage lender, it’s equally important to know what not to say during the application process. Certain statements can raise red flags, potentially jeopardizing your chances of approval or leading to less favorable loan terms.

In this blog post, Houston realtor Chris Schmidt and the professionals at Your Home Sold Guaranteed Realty - Chris Schmidt Team will discuss what not to say to a mortgage lender.

Key Takeaways:

  • When dealing with mortgage lenders, honesty should be your guiding principle. Providing false or misleading information during the mortgage loan process is not only unethical but also illegal.
  • During the mortgage application process, lenders are looking for financial stability and responsibility. Taking on new debts, credit accounts, or large purchases while applying for a mortgage can raise concerns about your ability to manage the mortgage payments.
  • While it’s important to be honest with your lender, oversharing personal information unrelated to your financial situation is unnecessary and can sometimes be detrimental.

What Not to Say to a Mortgage Lender?

Honesty is Always the Best Policy

When dealing with mortgage lenders, honesty should be your guiding principle. Providing false or misleading information during the mortgage loan process is not only unethical but also illegal. Mortgage fraud can result in severe consequences, including loan denial, legal action, and damage to your credit score. Even if you think a small lie might help your case, it’s never worth the risk.

Avoid saying things like:

  • “I make a little more than what’s on my tax returns”
  • “This isn’t really a second home; I just said that for better rates”
  • “I’ll be getting a raise soon, so you can count that income”

Remember, lenders will verify your information through various sources, including tax returns, employment verification, and bank statements. Any discrepancies can lead to delays or outright rejection of your application.

Don’t Discuss New Debts or Financial Instability

During the mortgage application process, lenders are looking for financial stability and responsibility. Taking on debts, credit accounts, or large purchases while applying for a mortgage can raise concerns about your ability to manage the mortgage payments. Similarly, discussing financial difficulties or inconsistent bill payments can make lenders wary.

Steer clear of statements like:

  • “I just opened a new credit card for the rewards.”
  • “I sometimes forget to pay my bills, but I always catch up.”
  • “I’m planning to buy a new car right after we close on the house.”

It’s crucial to maintain a stable financial picture throughout the application process. Avoid taking on new debt or making significant changes to your financial situation until after your mortgage is approved and you’ve closed on your Houston home.

Demonstrate Preparedness and Knowledge

Mortgage lenders appreciate working with informed and prepared borrowers. Asking basic questions about how much you can borrow or indicating that you’re still working on putting together a down payment can make you appear unprepared.

Avoid saying things like:

  • “How much can I borrow?”
  • “I’m still saving up for the down payment.”
  • “What’s the minimum credit score I need?”

Instead, do your research beforehand. Understand your financial situation, including how much you can comfortably afford for monthly payments. Have your down payment ready and know your credit score before approaching a lender. This preparation demonstrates your seriousness and financial responsibility.

Employment Stability and Property Conditions

Lenders also value employment stability when considering mortgage applications. Mentioning plans to change jobs or careers during the application process can be a red flag. Similarly, discussing major renovations or repairs needed on the property you’re buying can raise concerns about the home’s condition and your ability to afford both the mortgage and necessary improvements.

Avoid statements like:

  • “I’m thinking about switching to a new career soon.”
  • “The house needs a lot of work, but we’ll fix it up after we move in.”
  • “I’m planning to quit my job and start a business after we close.”

If you’re considering a job change, try to wait until after your mortgage is approved and you’ve closed on your Houston home. Regarding property conditions, be upfront about any known issues, but avoid discussing extensive renovation plans that might suggest the home is in poor condition.

Keep Personal Matters Private

While it’s important to be honest with your lender, oversharing personal information unrelated to your financial situation is unnecessary and can sometimes be detrimental. For example, asking to keep information secret from a spouse or discussing personal conflicts can raise concerns about your overall stability.

Don’t say things like:

  • “Can we keep this information from my spouse?”
  • “I’m going through a divorce, but it won’t affect my finances.”
  • “My business partner and I are having some disagreements.”

Stick to providing the necessary financial information and avoid bringing personal matters into the conversation unless they directly impact your ability to repay the loan.

Remember, if you have any doubts or questions, you can always consult with your realtor or a financial advisor before discussing sensitive topics with your lender.

Call or Text Chris Schmidt Today to Get Your Mortgage Loan Process Started!

Your Home Sold Guaranteed Realty - Chris Schmidt Team. What Not to Say to a Mortgage Lender?
Chris Schmidt

Chris Schmidt is the owner of Your Home Sold Guaranteed Realty – Chris Schmidt Team. Chris has 20+ years of experience in real estate and is deeply familiar with the Houston housing market. He’s a member of the Houston Association of Realtors and has earned the Graduate, Realtor Institute designation from the National Association of Realtors.

He began his real estate career in 2004, when he joined Coldwell Banker United as a broker associate. He worked as a broker associate for over 10 years before deciding to begin his own real estate and mortgage lending team.

If you work with Chris Schmidt and the agents at Your Home Sold Guaranteed Realty – Chris Schmidt Team, you’ll have nothing to worry about on your home purchase or sale of your home. We’ve received numerous 5-star reviews from past clients who loved working with us. Clients value working with our team because we always take the time to understand their real estate goals and learn about what’s most important to them.

Faster

  • Get pre-approved in minutes
  • Closings on average in 20 days or less

Cheaper

  • 1% and 3% down options
  • Borrower Assistance Programs
  • Savings that average over $9,400 versus large banks and retail lenders

Easier

  • User-friendly technology allows you to track the status of your loan throughout the process

To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!