WHAT LENDERS ARE LOOKING FOR?
There are 3 different types of lenders. Each has its own advantages and disadvantages
- The “A” lenders - This is your typical physical bank, the ones you’ll see while driving down the street on the way to work.
- Benefits: These lenders tend to have the lowest interest rates compared to the other types of lenders
- Drawback: They are harder to secure compared to others
2. The “B” Lenders - The high-risk lending institutions.
- Benefits: Even if your credit scores are not good, a little bit shabby, jumping around jobs, they can still offer you a loan.
- Drawback: Has higher risk and higher interest rate.
3. Private Lender - A private institution or person that is offering the money
- Benefits: They tend to have lower qualifying guidelines than the other types of lenders
- Drawback: They tend to be 3x to -4x pricier than the A or B leaders, they also have fees and penalties.
---------------------------------------------------------------------------------------------------------------
- Credit Scores - the higher the credit score the better and the higher odds that they will secure lending your mortgage to you
- Debt to Service Ratio - the lenders will want to see how much you owe vs how much you spend or how much you are making
- Job - How steady is your job. How regular is your job? Do you move around? Do you switch jobs often?
These are the areas you need to have or improve to be able to secure a lender to your first or second house.