Since we specialize in helping those who cannot get a loan from the banks, we have a different perspective when we look at a loan file.
Rather than looking for something wrong to see if the loan should be declined, we look for reasons why the loan should be approved. In other words, we look for the strengths of the file and not just the weaknesses.
Of course we have to look at the weaknesses so that we know what they are and how our investors might view the file. But we also look for reasons why the loan could make sense. Balancing these two things gives us a more complete understanding of the loan and opens the door to getting it approved when others would say no.
As a borrower, you may only be thinking of the things that could prevent you from getting a loan. However, these weaknesses in your situation can be handled in many situations.
Here are a few common situations and how they can be overcome.
- Bad credit: If you have low credit scores or recent “credit events” like a bankruptcy or foreclosure, there is usually a reason. Giving a complete explanation of what happened is helpful. But the thing that really helps is an explanation of how it is either already handled or how the loan you are applying for will handle it.
- Property is a fixer: If you own a fixer or are buying one, the value will increase as you improve it. Having a clear plan on how you will do this can make the difference between getting approved or being turned down.
- No money for a down payment: Some people own a property already that has little or nothing owed on it. They want to buy another property but have little or no cash for the down payment and closing costs. The property they already own can be used as collateral for the down payment.
- Another little known tip to getting your loan approved is to tell us everything. If we know the details on what you are trying to do and the barriers to getting it done, it is much easier to handle the barriers and figure out a solution.
There are so many different situations that it would be nearly impossible to list everything in a single post or even a whole book. But if you or someone you know has a difficulty in getting a loan, we may be able to help.
The thing that really sets us apart from other lenders is not just that we really care and want to help. It is that we are very good at looking at your whole situation and figuring out the solution that will work to solve the problem.