Getting finance to purchase any property—whether it is a commercial one or a residential one—is difficult. For this reason, you just cannot leave anything to chance when it comes to designing your loan application. Since many loan applications carry one error or the other, we have framed a post that will help you, the borrower, to design a loan application that is not spoiled by even a single speck of error. So let us get started, now.
Be up front about your financial position
Here is one common reason why countless mortgage applications are thrown into a wastebasket. The reason is simple—you have never been forward and open about your entire financial position with your lender. Your financial position gets degraded when you have missed a recent large financial obligation in the last 12 months. Such delinquencies in not complying with your financial obligations can negatively affect your entire credit history and your overall rating with your selected lender.
And, mind you, your credit history will be scrutinized by every lender. So you must comply with all large and noted obligations on your credit on time; and if you have skipped paying taxes, judgements, collections, medical bills, or any other bills for that matter, we will advise you to remain pretty honest about that with your lender. Hey, you can even check your credit profile before inquiring for your loan application; and if you do not have one, you can get one by requesting it from any online company offering credit history reports.
Ensure that you are declaring each of your expenses properly
Many loan applicants lack mentioning other large obligations and or investments, which can be a big problem; it is actually one of the most common reasons why an application gets rejected. Many trade experts have seen countless applicants not disclosing other investment properties and or equity ownership in other real estate and or businesses.
And when their bank statements come to the fore, it is noted that they have done a range of payments to all sorts other credit obligations never previously disclosed. Because of such inconsistencies, the lender will easily decline the loan application because of different non-disclosed items. So it is better to declare your expenses so that you get a loan—whether it is a traditional loan or a no income verification commercial loan—that will be honored.
Knowing your limits beforehand is important
It is very simple to get caught up in the enthusiasm when you are hunting properties without knowing anything about how much you can borrow. Many industry leaders have heard tons of stories about how the borrowers find investments for their ideal rental income producing properties, but they do not know how much funds they can get from lenders and or the specifics associated to obtaining their desired and ideal loan for the investment to make overall sense.
Which is why it is ideal when you know a thing or two about who your lender and how much that institution can lend you. Many cases prove that there have been borrowers who have closed an auction by submitting a certain sum; afterward, they failed to pay the rest of the amount because they had neither the deposits nor a lender.
So these three points must be kept in mind when choosing the best real estate investment loan. Further, these points will hold water when it is about getting low documentation loans in Miami or in any other part of the world.
