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HOW TO INTERVIEW A MORTGAGE LOAN BORROWER
Mortgage loan originators will initially interview a mortgage loan applicant during the qualification and pre-approval process. If I am a loan officer, how would I go about interviewing a borrower? What types of questions would I ask? How can I interview the mortgage loan borrower and make sure they are telling me the truth so nothing goes wrong with me issuing a pre-approval letter. HOW TO INTERVIEW A MORTGAGE LOAN BORROWER?
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Conducting interviews with mortgage borrowers is the most critical part of my job as an MLO. It’s important to verify that all information collected is accurate and true for pre-approval purposes. Here are steps to interviewing a mortgage borrower.
Build Rapport
Establish Trust: Kick off with a good conversation, enabling the clients to open up and answer honestly.
Explanation of the Process: Describe what happens during prequalification or approval, highlighting required documents and checking for authenticity.
Ask Key Questions
Personal and Employment Information
Personal Details:
- What is your full name?
- Social Security Number (SSN)?
- Date of birth?
- Marital status?
- Number of dependents?
Employment History:
- Where do you work currently?
- What is your job title?
- For how long have you worked there?
- Have you had any gaps in employment within the last two years? If yes, explain why.
- What is your gross monthly income before deductions (taxes, insurance)?
Income Verification:
- Do you earn from other sources besides your regular salaries?
- Such as rental income, annual bonuses paid once off at year-end, or child support?
- If yes, how much?
- Can proof be provided for all stated streams of income?
Financial and Credit Information
Assets & Liabilities:
- Savings account balances.
- Please list balances held jointly with the spouse if applicable.
- Current value(s) of investment portfolio(s), e.g., stocks, bonds, and mutual funds.
- Retirement account balance statement(s) ending March 31st this year should suffice.
- Are there any other properties owned by either party involved in this transaction? Yes or No.
- If YES, please give details below i.e., address(es), market value(s), rental income received per month).
Total debts owed:
- Vehicle loan(s).
- Outstanding balance(s).
- Student loan(s).
- Total balance(s).
- Credit card limit(s).
- Current balance.
Credit History:
- Have there been any late payments made on bills within the past seven years?
- Bankruptcy filed against yourself or joint applicant(s), if any.
- Foreclosure on real estate property owned individually or jointly with another person or entity.
- Court judgments for monetary claims obtained against yourself individually or jointly with someone else? Yes or No.
- If YES, start with the type of event and the month and year it occurred.
- Then, briefly describe what happened during each event and the outcome and result.
Down Payment & Closing Costs:
- How much money have you saved up for a down payment?
- Are funds available in your account now to pay closing costs (s)?
Property and Loan Information
Property Details:
- Will this be your primary residence, second home, vacation house, or investment property?
- Have you identified a specific address yet? If YES, what is it?
- Are you still looking around? Where would you like to buy or build)
Loan Details:
- How much money do you want us to lend out, advance, or disburse through the loan facility today?
- Which term should we consider most suitable for repaying this debt, i.e., 15 years long-term vs. short-term thirty years?
- Have they fixed interest rates versus variable ones adjusted annually after every five years?
Request Documentation: Ask the borrower to produce evidence for their claims after the interview. Some documents that can be requested include paystubs, tax returns, and bank statements.
Cross-Check Details: Review client-submitted paperwork against verbal responses given during the interview. Any disparities should be explained immediately by those concerned.
Check Credit: A credit report must validate an individual’s credit history and current debt obligations.
Ask for Clarification
Open up Ambiguity: If the applicant responds in a way that does not make sense or appears unclear, ask them to explain it. For instance, when someone says they were recently unemployed, please find out the exact dates of their unemployment and why they became jobless, among other things.
Discuss Red Flags: Wherever there are red flags on an application, such as late payments made by the applicant within the last six months or if their debt-to-income ratio (DTI) is high, go over these concerns with your client and demand more explanation from them.
Inquire about things that cannot be answered with yes or no:
Increase Transparency: Use open-ended questions that will most likely elicit longer answers from borrowers, providing more detailed answers, e.g., “Can you tell me more about your last job?” instead of “Did you work steadily?”
Trust but verify
Tell Them About Accuracy: Inform the borrower that Everything will be cross-referenced against facts. Any inconsistencies can slow down or even halt their loan processing.
Be Watchful. Observe applicants’ nonverbal cues and tone of voice; if something feels wrong, investigate further.
Take Notes:
Write Everything Down: Note what the customer says and any additional follow-up queries. These notes may come in handy for any issues later in this process.
Double-check Application Forms: Before sending out pre-approval letters, review all parts of the applicant’s forms plus supporting documents submitted.
Keep in Touch:
Address All Concerns: If you still have doubts or need further clarification, do not hesitate to contact us so that we can give clear replies before sending out pre-approval notices.
To sum up, successful interviews with mortgage loan borrowers call for caution and comprehensiveness. This can only be attained through asking the right questions and confirming facts. Stay sharp throughout the conversation to avoid surprises later in loan processing and ensure accurate pre-approval letters. Let me know if there is anything else I can help you with or if any further inquiries are required!