The Department of Veterans Affairs of the United States of America, cares for the citizens of country as well as their need to have a home of their own. A VA loan is something that has been designed to help veterans and their families find a home for themselves and ensure their security. Finding a VA approved lender may not be that difficult, but convincing the lender to sanction you a definite amount as loan can be more difficult than you think. You are probably aware of the various impediments including eligibility requirements, fixed income sources, good credit scores and several other such, that may come in your way of availing a home loan at low interest rates. However, you may not know that your lender can go full throttle over personal enquiries before they actually give a nod to your application.
Why would the lender ask you questions?
Simply because he is the person giving you money and he has the right to ensure that you have got the stability to pay him back. Enquiry, forms one of the crucial steps of a standard mortgage application process. Mortgage lenders ask certain basic personal questions that can often get a little too personal. But, in certain cases they are necessary. Like for example, one cannot hope to get a VA mortgage approved if he does not disclose his social security number. In case of home ready loans, one needs to present the source of his/her down payment. Now, though the lenders have got the right to ask you certain questions, they cannot tread into certain territories. So, before you actually take a leap it is better to know about the type of questions that your lender can ask and the ones that he cannot.
Questions the lender can ask
Let us take a quick look into the type of question you can expect your lender to ask.
Your marital status - He has to take a note of your eligibility requirements as in case of certain home loans like VA loans, the marital status of the borrower matters. In most cases, the lender wishes to know because a person who is divorced or is paying or receiving alimony from the other person will have his income affected. Naturally, he may or may not be in a position to repay the VA mortgages in time. Moreover, people living in “community property” states, need to present an account of the debts that both the spouses have.
Your age - The Equity Credit Opportunity Act offers fair treatment for all mortgage applicants. This implies that lenders cannot discriminate against borrowers. If your lender asks you about your age, it would be because he needs to ensure accuracy of the application. They also need to document that the borrower is at least 18 years of age.
Your lawsuit involvements - There are a series of questions that are asked for the purpose of declarations. These questions are in the form of ‘yes and no’. If you answer a ‘yes’ for lawsuits, that won’t turn your application down, but will only trigger a number of needful queries.
Questions about ethnicity - You can leave this question blank, but it does not harm to answer. This question is asked to help the government track whether the mortgage applications of a certain ethnicity are turned down or accepted.
Number of children - The number of children you have and their ages play a role in the process of loan approval. Your family’s monthly income, expenses and credibility to repay is calculated on the basis of it.
What he cannot ask
As we said previously, there are certain territories your lender cannot venture into. If he does, you can always object to it. For example, your Colorado VA loans lender does not need to ask about your health as that would be considered discriminatory by the government.
He should also not ask if you are planning a family. In case the borrower is pregnant, the VA loan lender in Colorado cannot ask about its details or whether one of the parents would stop working after the ‘child’ is born.
There are several other specific questions about VA loan in Colorado that overly-intrusive lenders ask. You, as the borrower, can object to it and deny from answering it.
As we said previously, there are certain territories your lender cannot venture into. If he does, you can always object to it. For example, your Colorado VA loans lender does not need to ask about your health as that would be considered discriminatory by the government.
He should also not ask if you are planning a family. In case the borrower is pregnant, the VA loan lender in Colorado cannot ask about its details or whether one of the parents would stop working after the ‘child’ is born.
There are several other specific questions about VA loan in Colorado that overly-intrusive lenders ask. You, as the borrower, can object to it and deny from answering it.
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