Are you thinking of refinancing your house, car or boat? Concerned about your credit rating and wonder if you would be approved? It’s a great idea to have a conversation with a current lender, about your prospects for another loan might be in your best interest. Lenders look for a debt to income ration of 80 to 20.
The in depth discussion you have with your current bank will not only give you an idea if you will be approved when you make the formal application for the loan, but it also will give you a very good idea of the amount you would be approved for. In that case, you can make needed adjustments to your budget and not face any unwelcome surprises.
- Lenders look at how much you owe compared with your income, how much of your available credit you are using and how much spare cash you have after paying living expenses.
- Lenders will also take a dim view if you have missed repayments in the past, because they worry about history repeating itself.
"When assessing an application for credit, lenders will calculate their own credit score for you using their own unique formula, and do their own assessment of whether you can afford any new credit, such as an increased mortgage in your case."
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