The speed and ease in which a person’s real estate loan is processed are based on credit score. If a person has an excellent credit rating, the process is significantly reduced. On the opposite end, having a bad credit score could potentially delay a person’s application by months, if not, years. This often overlooked factor has been the detriment to several hundreds of applicants. This is why banks and other financial institutions continuously stress the importance of prevention; proper management of one’s finances and bank transactions should be maintained. That said, obtaining a real estate loan with bad credit – while difficult – is not impossible.
One can improve his or her odds by providing financial documents that prove economic stability. This could be a statement of rental payment or even credit card bills that have been paid on time. Bad credit scores are the results of past negligence. Applicants must be able to show that these mistakes will not be repeated in the future. It is suggested that at least 12 months’ worth of timely and proper payment be received and noted.
Applicants must also explain their low score. Lenders are more forgiving for a low rating due to understandable factors such as medical bills or student loans. The key is to not to be perceived as a risky investment. One must remember that financial groups are extremely protective of their assets and will most likely provide a loan to an individual who is capable and willing to return their investment.
Steve Liefschultz is the CEO of Equity Bank, which deals with various investment lines of credit and real estate loans. Learn more by liking this Facebook page.
Image source: realestatebulldog.com
One can improve his or her odds by providing financial documents that prove economic stability. This could be a statement of rental payment or even credit card bills that have been paid on time. Bad credit scores are the results of past negligence. Applicants must be able to show that these mistakes will not be repeated in the future. It is suggested that at least 12 months’ worth of timely and proper payment be received and noted.
Image source: realtybiznews.com
Steve Liefschultz is the CEO of Equity Bank, which deals with various investment lines of credit and real estate loans. Learn more by liking this Facebook page.
