Climate Finance

Whenever a lending institution receives loan applications, the decision on whether to grant the loan is based on two decisions: the property and the borrower. Both you and the property have to be in very good condition. On the borrower's end, the institution will look at aspects such as the credit rating, employment status, usable monthly income based on the salary, condition and history of existing mortgage deals. The property on the other hand has to be in mint condition or rather worth more than the principal amount requested. Both the borrower and the lender have to fulfill these requirements so as to qualify for a secured loan. However, there are a couple other details that can play a major role in getting you a secured loan.

First, make sure to find a reliable loan broker. Most lenders rely on brokers to get potential clients due to the convenience they bring. As such, it is vital that a borrower gets a good broker. With a good and reliable broker the borrower is more likely to get the loan in question paid out. In addition to this, the amount the lender pays the broker will have a bearing on the brokerage fee the borrower will have to pay.

Second, make the broker your partner, not your enemy. Working against the broker will only make things worse for you, the borrower. Obviously, you will be required to produce a lot of paperwork as brokers prefer following every step to the letter. It might seem annoying but at the end of the day, you will reap the right fruits when cashing out.

Third, make sure to have a sit-down with your broker and have him explain how the lender will go about your income calculations. In some cases, debt consolidation is the better option. In some, the fact that one got regular work on a contract basis in the recent past could be a basis to argue for better rates, regardless of being self-employed. Make sure to consider all possible scenarios with your broker beforehand.

Finally, make sure your credit ratings and taxes are in check before going after the secured loan. Using a program like Quicken can help make sure your credit score stays high by helping you keep track of bills and pay them on time. Quicken will also show you your current credit score and keeps you abreast of any changes to your credit report. Compare versions to make sure you get the right one for your needs. Most lenders do not like seeing any sort of arrears, be it in your taxes, bills, mortgage, or other loans. Deal with any possible defaults as early as possible.