Introduction: Qualifying for a loan deal could be difficult if you are not aware of the requirements you need to meet. These requirements are in order to convince the money lender and increase your chances of securing the loan deal. This is because every legal money lender is really looking out for security on the loans they give, and these requirements ascertains this.
Some of them include:
Credit
Some people have outstanding credit and some people have challenges with this due to situations like late pays. You know, bad things happen to good people all the time, and sometimes that's the reason for a low credit score. But the lender doesn’t really care about this, and they are going to say “if this guy can't pay a $25 a month credit card, why are we going to lend him $300,000?
Income
Next thing a local hard money lenders office needs to know before qualifying you for the loan deal is your income. This goes hand in hand with Job stability. Well, do you have job stability? How long have you been on your job? You could get a job and get approved for a quick loan the next day. But if you change jobs every three months, well that job stability isn't there.
Debt
Not only do they want to see your credit, but on the credit report is a list of debts. This means that on your credit card, you have your car payment, child support, alimony etc. LBC Capital LLC take a look at all the numbers versus your income.
Collateral
Something else Los Angeles Hard Money Loan Office lender obviously wants to see is an appraisal of the property. The lender has to know that if it's a $400,000 loan, that the house isn't worth $350,000 so the collateral is the last piece of the puzzle that they have to make sure it's worth it. But that also protects you as the borrower.
