Why Do Lenders Ask So Many Questions Home Buying Process?

If you’re at any point in the loan process, whether you’re working on getting pre-approved, you’re already under contract and buying a home, you might be thinking to yourself, “Why do lenders have so many questions? They just keep asking me more and more questions. What’s the deal with this?” I wanted to talk about that in this week’s tip because it crosses a lot of people’s mind.

Why are lenders so nitpicky? Why do they ask so many things of me?

The reality is, is underwriting guidelines are strict right now. Lenders need to know a lot of things about your situation to make sure that they’re doing their homework and they have things buttoned up for you. And especially with COVID hitting, underwriting guidelines have gotten even more complicated. There’s even more questions that lenders have to ask to make sure that they’re looking at your file properly and that you will be approved for the loan.

A good lender, they’re going to ask a lot of questions, especially when you go to get pre-approved upfront because you want to make sure that your lender is being thorough and you’re not going to be running into problems once you’re under contract on the house. This is the reason why lenders ask so many questions. There’s things regarding income, your assets, your down payment and closing costs, your credit, your employment situation. There’s so many different factors involved with getting a home loan. And with guidelines, particularly tight right now with COVID, lenders are going to ask a lot of questions.

That’s why this happens. We’re definitely not picking on you. I promise it’s not you. This is everybody that gets a lot of questions throughout the loan process. But hopefully that helps to explain the reasoning behind why lenders asked so many questions. And if you have any questions regarding why we ask so many questions, just give me a call in the office, call, text or email. 303-670-0137.

I’m definitely here to help you with that or anything else home loan related.

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