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The Loan Application
Process
Our loan application form asks for information on the property you
are buying, as well as the employment and financial history of all
loan applicants. We will verify the information shown on the loan
application before deciding whether or not to make the loan, so it
is very important to make sure that it is complete and accurate.
The
information you provide us is completely confidential.
It is easier to complete the loan application process if you prepare
for it ahead of time.
We will ask about:
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your personal finances,
including bank account balances,
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current loan amounts (existing loans, mortgages,
lines of credit)
and payments,
-
credit card balances and payments
-
your income and employment history for the last 2
years
-
assets you current own
You need to be
thorough and precise in providing this information, so it is best to
assemble information before you meet with us.
You will be asked to sign a section of the loan application form
that contains your certification that the information you have
provided is correct to the best of your knowledge, your promise to
advise us of any material changes in the information, and your
consent to verify the application data.
We will then send your loan application to a
lender who offers competitive interest rates and who we believe will
approve and fund your type of loan request. The approval process
usually takes 24 - 48 hours if all documentation is provided in good
order.
Because of the particular circumstances surrounding a loan
application, we may require additional information or documentation
regarding you or the property after the application has been
submitted for approval. We make every effort to collect all data at
the outset, but cannot foresee every eventuality. Requests for
additional information are not necessarily bad omens, and your
primary concern should be in responding promptly with the
information.
Once your loan is approved, the lender will issue
a letter of interest/commitment to you. You sign the loan
documents and you receive the funds. END OF PROCESS!
Save months of shopping lenders and negotiating
rates and terms. We will direct your loan to the right funding
source for your business.
How Lenders Make Their
Lending Decisions
We believe that an educated consumer makes the best customer,
therefore, we want you to know how lenders make their
lending decisions. Whether you get your loan from us or from another
lender, we want to do our best to help you succeed. So use the
following (partial) inside lenders guidelines to help you get the
funds you deserve.
Character: Lenders review your character based on your personal
credit report (Equifax or Dun and Bradstreet), and the personal history that you
provide. If you have low debt and have paid your bills on time for
the last 5 years, your chances for a loan are good. But, what if
your personal and/or business credit is not good? Anticipate the
question, and give the lender your reasons for any credit problems
(in writing), along with any proof you may have. Also, consider
getting a cosigner with good credit.
Collateral: Collateral helps lenders feel secure about getting their
money back. But, what if you don’t have any collateral? You may want
to consider taking on a partner/shareholder with collateral in real
estate, securities, equipment, or businesses assets. You can also
talk to family and friends for help.
Ability to make monthly payments: Lenders want to be sure that you
can pay your monthly loan payments and existing expenses and have a
payment cushion of at least 15% or more of your monthly loan
payment. Lenders look at past, present, and future business
performance to see if you can make your payments. If your past
history shows you could not make your payment today, show why you
can make the payment now, for example: new rental income, new
contracts, reductions of expenses. Also, be creative. A cosigner’s
business may be strong enough to show the lender that the cosigner
can make the monthly payment. Renting a portion of your business
space to a tenant can increase your ability to pay your debt. A
recent applicant who could not make their monthly payments rented
out a portion of their property (30%) to a major public company for
almost their entire monthly loan payment and then assigned the lease
to the lender as collateral.
Commitment: Show lenders your commitment. Borrowers often come to
lenders while leaving themselves room to retreat if the business
fails. Why would a lender risk its funds on someone who is less
committed than the lender? Show your commitment, and offer your
collateral up front. For example: Hernando Cortez (1500s Spanish
explorer), upon arrival in Mexico, gave his first order (after
landing) to burn his ships. This showed his commitment to conquering
Mexico. We don't recommend burning your house, but lenders are
interested in committed people.
For business owners:
Experience: Lenders want to know that you can run your business
successfully. Give us your résumé and stress your qualifications.
But, what if you don’t have all the necessary qualifications? Create
your management team. Lenders don’t expect you to be able to do
everything, but we do expect you to manage the business by hiring
the right staff, consultants and advisors. Obviously, advisors with
reputable Credentials enhance your image with lenders. Employees may
take less in salary in return for a percentage of the business. If
they own a piece of the company, lenders feel they would remain in
the business for the long run.
Capital: Lenders want to know how much money you have invested in
your business. Generally, they will lend a multiple of what you
invest. For example, some lenders will lend 3, 4, 5, or more times
what you invest. If you don’t have the money you need, look to
friends, family, and investors.
Like you, we want your dreams to become reality by helping you
succeed. If we can help, call us.
APPLY FOR A MORTGAGE NOW!
SEE ALSO
Understanding your
credit
Brokerage Fees
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