3 Tips For Working With Banks When Buying Property
You have read all the stories and you have taken all the tips you can find on how to get financing from the banks but, unfortunately, you still cannot get a loan to buy that house that you want so much. The truth is that, when it comes to buying a house, financing is one of the most difficult huddles you will have to overcome.
It, therefore, goes to reason that you should try as much as you can to find out the most practical tips for working with banks to buy property. Here are the things you need to do:
Have a solid relationship with your bank
Of course, there are other things that matter such as your credit score and your earnings. But every savvy veteran investors will tell you that your relationship with your bank matters just as much as your credit score. How many times have you had that the new President of the United States, Donald Trump went bankrupt more than once but bounced back? The truth is, most veteran investors have secured financing even when they were down and out for the financial count mostly because they had great relationships with their banks.
It helps that they had a stellar reputation, to begin with and that they only fell on hard times. So, if you are planning to buy homes somewhere in the future, you might want to choose a bank and start building a good relationship with them. Save, make sure your credit score is up and maybe even borrow a few times just to show them that you pay back without any issues. After 6 months or so, you will be well on your way to being an excellent customer for them.
Have other accounts and assets
All lenders want is the security that they will be paid. Failing which, they want assurances that they can easily recover their money should things head South. You, therefore, need to have savings or other accounts that are liquid enough at least to cover three to six repayments should you lose your job.
Your assets should be large enough to cover a huge chunk of the debt should an impromptu expense or circumstance come into play. So feel free to hold other accounts and assets in your name.
Build on whatever equity you already have
If you already have another home then your number one priority should be to build equity on that property. Banks are always willing to give you a secured loan if you have another home that is not taking on water.
Basically, the idea is to put yourself in such a position that you are not a total risk to the bank. It is the same principle they use when they look at your credit score. The higher your score, the less scary you are as a borrower.