Applying for a loan is notoriously full of massive amounts of paperwork. And it’s not just any paperwork, either. You’re providing the lender with your most sensitive personal information, including your social security number, bank account information, and tax documents.
Clearly, this isn’t information you want to be available to anybody—only those who need to see it to process your mortgage.
You may pause and wonder how safe your information is when you apply for a mortgage and the laws that govern what mortgage companies can do with that information. It’s a valid concern, so let’s talk about what you can do to protect your personal information and about what lenders do to protect it, as well.
After all, we live in an age of rampant identity theft. You’re at risk any time you share your personal information with anybody.
Why Lenders Need So Much Information
First, you might wonder why lenders need so darn much of your personal information. With today’s stricter lending standards (some lax lending contributed to the housing market crash a decade ago), lenders must be very meticulous about checking personal information before giving you a loan. Gone are the days of flying through a loan application, and that’s a good thing!
You must prove your financial health before a lender can decide to lend you money. It’s the only way for the lender to be sure that lending you money is a sound decision. They want to make sure you can pay the money back comfortably.
What You Can Do
So, since you have to provide this sensitive information to your lender, what can you do to protect your personal information from cyber criminals?
What Your Lender Can Do
If you have any questions about how your information is used, stored, or disposed of, don’t hesitate to ask. The lender should be happy to tell you how your information is used, shared, and stored.
Interested In Obtaining Mortgage Pre-Approval?
Here at GTG Financial, we encourage each of our clients to to have an initial mortgage planning discussion surrounding your current situation, goals/budget, and timeline. There are so many additional factors that go into qualifying for a home loan today, it’s important that you are working with a professional that understands the ins and outs of the process and current market trends.
To get started, please click Apply Now.