When BORROWING a sizable amount of money from any financial institution, there are few things that you should be aware of to at least even up the odds when you apply with these lending establishments. First, you have to know the factors that banks and other Money Lending institutions use to decide on how much to lend a loan applicant. Second is to find ways and means to increase your borrowing power and last is to look for people who can help increase your chances of getting your loan approved.
Deciding on how much to lend you
MONEY LENDERS have various ways of assessing how much cash to lend you and the first thing they look at is how much and how long you can afford to pay the loan. Next is your existing credit liabilities, consistency of your income and most important your CREDIT rating. In order for you to maximize or at least increase the amount you need to borrow, you have to lessen or minimize anything that might be considered to be red flag on your credit standing. Finally, make sure that your finances are in the best possible situation.
Raising your Borrowing Power
There are several ways to increase your borrowing power and these are to pay off debt; close all unnecessary credit liabilities and accounts; improve your credit rating; organize your account; if possible ask for a salary increase if you are a wage earner; spend less; and the last is to shop around for the best loan package that you can get.
Use the help Other People to Increase Your Chances of Getting a Loan
Ask for help from people you know to help boost your chances of landing a loan. There are a variety of ways by which you can do this. First, try to get a guarantor or a co signatory for the loan. However, this will lengthen the loan processes because aside from checking you out, they’ll have to check the credit standing of the guarantor too. Second is to ask somebody for a joint mortgage. Finding somebody to agree on a joint mortgage will up your borrowing power because both of your income will now be taken into consideration.