This isn’t what you want to hear when you make the trip to your bank, cap in hand, to ask for money. However it’s often what’s said. The main reason is that many borrowers don’t understand how lenders look at you and how they assess your worthiness.
BY JANE SLACK-SMITH
It comes down to a two things:
- 2.What you’re buying
Let me deal with the first component. Without getting over the initial hurdle you can’t hope to even start the discussion on the second. So what is it that lenders want to know and how can you make yourself attractive to them?
Well it comes down to what you earn, what you owe and what your past looks like. This helps them anticipate your worthiness as a client and their assessment is based on more 100 years worth of data, in many cases, of what their past clients have done, how profitable they were for the bank and how worthy of lending they were. They have a profile of whom they want as a client.
Without doubt, you need an income and for most of us this means a job. To define this even further, it comes down to what I call your ‘career collateral’ and your ‘career capacity’. So let’s look at each of these.
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