1. Discuss emergency funds and contingency plans. Emergency funds should cover between three and six months of living expenses.
  2. Ask them to tie up other debts before adding a mortgage to their load. Provide a timeline based on their current situation and ask if it’s realistic. They may only have to delay a year or two.
  3. Ask how stretched they feel from a budget standpoint. Can they pay their credit-card and utility bills in full, or are they only paying minimum balances?
  4. If they’re looking at an income property, ask how long can they go without collecting rent.
  5. Ask what their long-term goals are for the property.