Everyone is either one of the two main types of borrowers. The first is the kind that lenders hesitate to approve their loan request due to a variety of reasons. Then there’s the kind of borrower that lenders clamor for. So how do you make yourself irresistible to lenders? Here are three suggestions.
Have a stellar credit history.
Your credit score is immensely important when you’re planning to secure a housing loan from lenders like the Wasatch Peaks Credit Union. Before you look for a property to buy, obtain a credit report and find out whether there’s a problem with your credit. If your numbers are good, then banks and financial institutions will be happy to provide the loan you are looking for. Avoid heavy debts as much as possible.
Borrow from the right bank or institution.
Doing due diligence before you apply for a mortgage can increase your chances of securing a loan. You want to work with a bank that prefers borrowers just like you. Some lenders are quite hard on borrowers that put down a small down payment, while others don’t mind. A reputable broker should offer guidance on which bank has services tailored for the kind of borrower you are.
Invest in the right kind of home.
Some institutions are wary of lending to buyers who want to buy certain types of home. Some lenders will not give you money if you are buying an apartment located above some types of business. Others are wary of homes built from some kinds of materials. And should they agree to finance such homes, they slash the amount of mortgage they’d have offered had you bought a different property.
Banks may have tightened their lending criteria, but that shouldn’t dampen your dreams of owning a home. By making yourself attractive to them, you can greatly boost your chances of being one of the approved few.