Pre approval interview is your next step after you have completed your initial mortgage pre qualification. When meeting with your lender or mortgage advisor, you should prepare yourself with the answers the lender is waiting to hear. You should be able to come out as a person who is fully capable of paying mortgage and not a person who would appear as a high risk client. Here are some of the questions you should prepare yourself to hear as the lender digs into your financial background:
What Specific Home Do You Have In Mind?
The goal of this question is to determine whether you can get a mortgage that allows you to get that target home and at the same time still be able to meet your other financial responsibilities. So if you already have a home in mind, bring in some details during the interview so you know the price range of that home and you're lender can come up with a mortgage that will suit your entire financial capability.
What Are Your Income Sources?
Your household income is a very big factor in determining your mortgage size, interest rate, and payment terms. The higher your income is, the better chances you have in getting a shorter amortization and lower interest rate, primarily because you can pay more. Meaning, if you can only pay minimum, you can face longer mortgage terms and ultimately pay higher interest.
Do You Have Negative Spots On Your Credit?
If you do have black marks on your credit, make sure that you can answer for them. Honesty and confidence is key. So instead of hoping that the lender doesn't bring this up, it's better to prepare with an answer. Besides, the lender wants you to get that pre approval as much as you do, as that is where they get good business. So, just as long as you can respond with valid reasons, credit black marks can be less of an issue.
What are Your Financial Plans In The Coming Years?
Interest rates fluctuate and your future payments will always be affected. Make sure that you can narrate your financial plans for the next five to ten year so as to assure the lender that you are prepared for interest rate fluctuations
