If you are in need of a business or real estate loan, there are steps you can take that greatly improve your chance of success. The first and most obvious is to make sure your credit rating or FICO score is as high as possible. When you apply for a business or real estate loan, the lender will "pull your credit report" to see if you are credit worthy. Did you know that every time someone "pulls' your report it causes your credit rating to go down? If you have a credit score of 680 at the start, you may find it goes down to 650 after you allow several credit reports to be pulled. It's important to realize that you have control over this. No one can pull your credit report unless they have your permission. This puts you in control. When you first meet with the loan officer, instruct him not to pull your credit report until you are ready. Tell him that you want to discuss the entire deal with him before you give him permission to pull your credit report. Most loan officers will agree to this. The reason you want to do this is two-fold. First, you want to show the loan officer that you are the kind of person who takes control of the situation instead of someone who is controlled by outside factors. Never forget the human element when applying for a loan. If you make a good impression on the lender you have a better chance of being approved for the loan. Lay out the entire deal for the loan officer. Ask him if he believes that you have a good chance of being approved for the loan by the loan committee. Show him that you respect his opinion. Once he has reviewed all the information he should be able to determine whether or not you qualify for the loan. If his answer is positive, then you can give him permission to pull your credit report. Another reason for taking this approach is that by waiting for a tentative yes or no answer from the loan officer, you avoid the possibility that your FICO score will drop because of "too many inquiries" on your credit report. Taking this "wait and see" approach allows you to project a professional image that will command respect by the person reviewing your loan application and it will protect your credit rating. This leads us to another step you can take to help insure your success, be knowledgeable. Make sure you do all necessary research before meeting with the Loan officer. When you come to the meeting looking prepared, you will give the appearance of being a professional. This will increase your credibility with the Loan officer. Also, never be too anxious when applying for a loan. Lenders will suspect problems if you come in saying "time is of an essence". It's much better to project a "laid back" attitude. Remember, the Loan officer's job is to determine your ability to pay off the loan back according to the agreed upon terms. You CAN get the loan you need, but it's important that you keep your FICO score as high as possible and that you present the image of someone who is professional and capable. |
