It’s important to look ahead when preparing your loan applications in the real estate game.
In real estate investing, leverage comes from using other people’s money to generate wealth and income.
The better your leverage, the easier and more profitable real estate investing becomes.
But how do you find the right loans that can give you that leverage?
Before applying to various lenders, make sure you’re prepared for the basics.
This may seem basic, but it can be really tempting to slip in a few lies when you’re trying to get a deal. Don’t do it.
Lenders do background checks, look at credit, and generally get external confirmation for everything you tell them. Lying not only makes their jobs harder, but your lack of honesty can ruin your reputation with that lender.
Make sure you disclose if you’ve gone through bankruptcy or if you have any credit card debt.
They will find out if you’re hiding information or stretching the truth, and you’ll get dumped to the bottom of the pile.
Especially About Your Credit Score
One of the first things lenders look at is credit score. That score can determine whether you even get considered for a loan.
It’s better to be honest about a bad credit score and have a detailed plan about how to fix it than to lie.
If you have a bad credit score, work on fixing it before submitting loan applications.
The better the score, the better terms a lender will offer. The better the terms, the better your leverage.
If you have questions about raising your score or are interested in discussing a usage loan, you can contact us here, and we’ll be happy to discuss your options.
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