Five Things Loan Advisors Hate Hearing

Applying for a new home loan can be stressful, and often confusing. While Loan Advisors are able to assist and guide clients through easy and successful loan applications, there are certain things that can get in the way of a loan closing. Here are five big things Loan Advisors hate hearing from home loan candidates when trying to refinance or purchase a new home.

1. “I don’t have anything to put down.”
   When an applicant comes to a Loan Advisor for help on a new home loan but doesn’t have anything to put down on the home up front, there’s generally nothing a Loan Advisor can do. Equity is really important when applying for a loan. Because 100% financing isn’t an option, Loan Advisors have to know that candidates are able to take care of a home while you own it. That means being able to put back reserve savings for times when something goes wrong. Having money to put down toward a home shows that a candidate is capable of saving.
2. “I have poor credit.”
   Poor credit is a bad sign. While Loan Advisors can find loans for most credit scores, it’s harder to find one that’s manageable for customers whose credit scores are very low. Banks see this as high risk, and in order to make the loan worth it on their end, they raise the overall price and payments and extend the loan term. For those with bad credit, this kind of situation can actually become more of a burden than anything, and can often make their financial situation worse in the long run.
3. “My credit score is good, but my credit line is maxed out.”
   This is pretty much a deal breaker when it comes to applying for a home loan. Banks generally do not lend to borrowers who are using more than 30% of their available credit line. The perfect range is 10%, which shows that the applicant knows how to manage their finances and stay on top of their expenditures.
4. “What’s the best rate you can get me?”
   Like mentioned before, rate isn’t everything. A lot of older folks remember the days where they called around to find the lowest rate and went with it. Even ten years ago, a simple equation would produce a rate and that was all that mattered. Instead, length of the loan, monthly payments, and even the overall amount paid throughout the life of the loan itself are all more important in finding the right loan solution for you.
5. “I noticed that the Feds lowered home loan rates, what’s it at right now?”
   Every so often, the federal government will reduce the maximum rate on a home loan and Loan Advisors will get calls from potential applicants looking to know what that number is. While this does contribute to a better home loan, rates no longer hold the same stock that they used to. In a lot of ways, some customers are only looking for the lowest rate and call when they find out that rates have been lawfully lowered. Just like we said in #4, it’s not always the deciding factor; there’s a lot to consider when looking for the best home loan option.

Loan Advisors work tirelessly to help clients find the right home loan for them, quickly. Loan Advisors help guide clients through the process so that they know what’s going on every step of the way.

Written by: Ben Duke