Every once in a while, we all think about a place of our own, where we can kick back and relax and make memories with our loved ones. It is not too farfetched to say that a man’s castle is his own home. But it does not come cheap. Most of the time, it takes life’s savings worth to have a decent place.
This is where loans and mortgages come into the picture. With the rampant pandemic, every sector of the economy is affected and seeing a downward spiral. It may seem like overcoming Everest, but you can still secure a loan if you play your cards right, and some more.
In this post, we will share some tips with you that will allow you to improve your odds while meeting lenders. Remember, there are hard mortgage lenders in Tacoma WA that offer loans at lenient conditions. So, keep in mind to check them out.
Now, to the tips.
Not Every Lender Is Out There To Serve You
There is nothing guaranteed when it comes to securing funds from lenders. Every lender has its own criteria and there are two obvious scenarios with each application.
- If you fulfill the minimum eligibility criteria, you will be considered and your chances of getting a loan are bright.
- If your application is not stellar, you will be turned down immediately.
Surprisingly, a majority of applicants lie in the gray areas where the decision is heavily dependent on;
- Size of The Loan
- Size of Deposit
- Employment Status & Income
- Credit Score & History
- Existing Debt
Evaluate Your Credit Report Before Contacting The Lender
Mortgages is not given out on any single financial indicator. If you really need to secure one, you must show the lenders that you have the financial discipline and willingness to pay them back in the stipulated time.
A credit report is a commonly-used tool to gauge the financial health of an applicant to determine whether they are eligible to get the loan.
The following parameters are covered in the credit report;
- Credit Cards
Before, it would cost applicants some money to check their credit score but now it is usually free of cost. Again, it is not given that you will get the loan if your credit score is stellar, nor your name is totally ruled out if it is not up to the mark.
Vote Registration Brightens Your Chances
Even if your application is lurking in the gray areas, there are some parameters outside your application that can help your case of getting a loan from a lender. For instance, Private Money Lenders Inc Tacoma WA make it mandatory for the applicants to be registered in the electoral records.
You may have an excellent credit score but this will not guarantee a loan if you are not enrolled in your electoral school. Lenders and creditors use this information to verify your place of living and whether you belong to it or not.
There could be an exception to that if you can produce some other proofs, obviously at the discretion of lending agencies.
Your Former Spouse Credit Score Can Sour The Deal
Many applicants are, in some way or other, linked with their partners financially. This could affect their chances to secure a loan, mortgage, aid, etc. If you are separated from your former partner, it is best to get the papers updated according to new realities. Any late payment or other violation of any contract will be reflected in your report which will not be in your favor.
Spouses or partners are not the only ones that you could be financially attached to. Old roomies and flatmates also fall in the same category. If you opened a joint bank account to pay bills and utilities, it is best to check for yourself and sort them out.
Keep in mind that this precaution also applies if your partner has a stellar credit score now. In the future, anything can go wrong and you will have to share the repercussions with them.
Take Care Of Obsolete Bank Accounts
Bank accounts hold more than just money. They provide necessary, verifiable information to institutions and organizations that need it to process our application for the mortgage.
Still, if you have a primitive bank account that you are not using for a long time, it is best to close it. It can either;
- Make you a prime target for bank fraud
- Gives outdated information about you to lenders
Both are not in your favor.
Remember that these measures do not apply to credit cards. For instance, if you have two credit cards and you are relying more on the new one these days, it is best to keep the old one for the juice it provides to your credit score. Stable, long-term financial relations with institutions show that you can handle finances well.
While applying for a mortgage, the scales can tip in your favor or you can be rejected. It is best to keep your finances in order because they are the only quantifiable measure that you can take to improve your odds.