Smart Loan Shop

Archive for November 2nd, 2008

Hurry up and wait. This is the current mantra in the commercial construction finance industry. The banking industry is in chaos and getting financing is a slow process. Banks are terrified of risk and so you can wait month after month for funding.

While you are waiting for that loan to go through, your construction site will be sitting there untouched. If you are intending to build within a cold climate, waiting for loan money can mean trying to break ground during those winter months. Rather than sit around and wait for the bank, why not look into private loans?

There are many factors that lenders consider when deciding whether or not to extend credit to someone applying for a loan. Credit score, down payment, and the purpose of the loan are all factors. There is one factor that is looked at probably more closely than any other though, and that is the debt to income ratio. This is the way that a lender determines how likely a consumer is to be able to make timely payments for the life of the loan. Understanding how the debt to income ratio is determined is the key to making sure that you’re in a position to obtain credit in the future.