What do a priest, therapist, and mortgage professional all have in common? Confidentiality. You can tell your priest and therapist anything (except that you are going to hurt someone or yourself) and they are ethically bound to keep it between you and them.

When you apply for a mortgage, it feels like you are getting very personal with your lender. Your mortgage agent will ask questions about your finances that you’re probably not used to being asked. Not the kind of stuff that friends casually discuss. Your mortgage agent will need to know details about your life because they are brokering a loan worth hundreds of thousands of dollars. But don’t worry-- the information you share with them is private. They will not share it, sell it, or (if you’re like me and have made some not-so-smart credit decisions in the past) judge you. They objectively look at your financial position and use the information to make an informed judgement about what kind of loan is best for you, how much of a mortgage payment you can support, and other details of what is quite possibly the biggest purchase you’ve ever made.

So what can you expect to be asked? First off, you’ll need to give information about your employment and income. Your mortgage team will need to know where you work and how much money you make, as well as how long you’ve been at that job and how steady the income is (salary? commission?). If your income is commission based or irregular, Team Neal is expert at tailoring a loan for you. When my family made a cross-country move a couple of years ago, we needed to purchase a house but we were both starting new jobs as teachers in the local school district. This complicated our mortgage process, but Team Neal was able to evaluate our circumstances and get us into our new home without any complications.

You’ll also need to discuss your debts. What debts do you have and how much are your monthly payments for automobiles, credit cards, etc.? Team Neal will use this information to determine a debt-to-income ratio that will inform their loan tailoring process. There will also be questions about savings and assets, and you’ll be required to provide copies of bank and brokerage statements. Finally, there will be questions about why you’re buying a home, how you’re going to use it (residence, rental, etc.) and how much money you plan on putting down. It is important to be forthright and honest so that your mortgage professional can determine the best loan for your needs.