Do you want to have a good, yet stable credit record? Here are basic guidelines to put yourself in a good light with the banks, to obtain a loan for your perfect, not so expensive repossessed house.
1. Character – this entails your willingness to repay your debt. Financial institutions will look at these, which is obtainable from your ITC status.
2. Capacity – the financial institutions will determine your ability to pay back the loan.
3. Capital – this is your net worth. When you are a first time buyer without any assets, make sure to apply for the correct mortgage.
4. Collateral – these are assets to secure the amount borrowed. The lender will require security before granting a loan.
5. Conditions – entails the borrower and the current economic situation, both nationally and internationally.
When adhering to these basic guidelines, your credibility will increase greatly, giving you a greater chance to obtain finance for a repossessed house. Don’t you think this leaves your credibility in your hands?