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
- 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
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.