buyers discussing real estate information

How to Think Like a Lender

access_timehomeBlog Home

When you’re looking for the best rate on a home loan, it’s important to know what lenders are looking for. Read on to learn how to think like a lender.

What Bethesda Mortgage Lenders are Looking For

talking about buying a homeWhen doling out home loans, lenders are looking for telltale signs as to whether or not you will be able to make your payments. While these signs vary, the five key things lenders look for are:

  • Steady employment
  • Down-payment capabilities
  • Good credit
  • A consistent savings history
  • Steady spending habits

These are the major signifiers that tell a lender you’re capable of repaying a loan. And the red flags? See below:

  • Frequent job changes, especially those without salary increases
  • Recent self-employment in a new venture
  • Bad debt or credit history
  • No previous borrowing record

If you have any of these flags on your back, don’t be discouraged. These are standard lender pre-dispositions when evaluating your application, but when it comes to making a loan decision, most lenders will tell you nothing is completely carved in stone.

Not All Credit is Good Credit

Remember that not all credit is good credit. Additional credit cards, even those never used, can work against you. This is because those credit cards are looked upon as being open credit lines—and while they have not been used, they could be used, and potentially used up to the maximum dollar amount allowed by the credit card companies.

As a result, their perceived risks lower your credit, or FICO, score.

How to Find the Best Lender in Bethesda

person using a smartphoneWhen looking for the right lender, treat the ordeal as you would the house-hunting process itself. Don’t stop looking after one, compare rates, and don’t settle.

As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and homeownership information that may be of help to you, including a list of recommended mortgage lenders in the Bethesda area. Feel free to contact me any time to learn more about this important information, and be sure to forward this article on to any friends or family that may be interested as well.