Pros And Cons Of A Mortgage Lender

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5 Things Your Mortgage Lender Doesn’t Want to Hear

It is key when obtaining a mortgage that you be upfront with your mortgage lender about your situation. You should never lie or mislead them into believe something that is not true. However, there are some things that you don’t need to mention to your lender. There are things that if you do mention them, your lender might think twice about writing your loan. Avoid these at all costs.

Extra Insurance

If you are interested in purchasing additional insurance due to earthquakes, possible flooding or extremely high crime rates in the area where you are purchasing, you do not need to let the lender know. Once a lender becomes aware that a house is in a “high-risk” zone the underwriting for the loan becomes much more difficult. However, be aware that if the house is located in a flood-zone you are required to carry additional flood insurance and this is something your lender needs to know about.

The Findings of Your Home Inspector

Mortgage lenders do not need to know the all the details of what your home inspector found. Provide them with any of the information that they have requested, but do not go above and beyond on offering up this information. A lender needs to feel that the borrower is going to be able to continue making payments. If you clue them in on major
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Lenders feel more comfortable when they know that they buyer is prepared and investing their own personal finances into the house as well. Down payment fraud is the second highest type of fraud there is. If you plan on having money gifted to you for a down payment, be aware there are many requirements to make this process work. The gifter needs to be an immediate family member and will be required by the lender to provide bank statements and a paper trail. If your family member is unwilling to do this, you will be out of
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