Getting your loan application denied might sound like the end of the world, but it really isn’t! Even if a bank turns you down, there are plenty of alternatives available, including private loans. While you’re at it, here are some of the ways you can bring down your chances of a loan rejection:
You don’t need a lot of cash from a lender if you don’t need it. Make sure your loan amount is equal to what you need to reach your financial goal. If you ask for a higher amount, the lender will deem your case risky!
Always evaluate the reason for applying for a loan. Tie a dollar amount with it and make sure you’re only asking for that amount. An unnecessarily higher loan amount will also add to your financial obligations and make it hard to pay student loans and other debt.
Rebalance your debt and income
Jot down the amount of debt that you already carry and see if your current income is enough to support your liability profile. You can always think of supplementing your income by getting some more part-time work or working toward a raise.
Another way of rebalancing the income and debt is to pay off some of the debt. If you have any liquid assets such as stocks, consider selling them off and use the proceeds to pay off some high-interest loans.
Both of these strategies will significantly improve your debt-to-income ratio. A lower ratio is always more attractive for a lender and gives off the impression that your current liabilities are under your control.
Get a hard money loan.
Conventional bank loans are difficult to come by. The application and screening process is tough, elaborate, and very extensive. Since the banks have to follow fed guidelines, there is lots of paperwork involved.
Besides, banks often have a very stringent qualifying criterion. They take a lot of factors into account, including your credit history, employment history, criminal record, net income, project feasibility, and a lot more.
On the other hand, hard money lenders are a lot more easy-going and not bound by many regulatory constraints. As long as you are willing to put down fairly valued collateral, you’ll easily qualify.
If you’re looking for a mortgage company in New York that offers affordable private lending solutions, get in touch with Global Capital Partners Fund LLC.