I am on Social Security Income and rent my home. Why does that impede my process of obtaining a loan?
Loans are granted on many different qualifications. The questions most lenders want to know the answers to include:
1. is there sufficient cash flow to make this loan payment in addition to all other debts and living expenses?
does this person have a history demonstrating that they have borrowed and repaid on time?
is this an amount that usually requires collateral and is collateral available/offered?
Some lenders review the application and score it based on its attributes. As an example, an applicant may get more points for owning a home than renting. There is more of a commitment there, stability, and an asset usually appreciating in value.
If a lender denies your loan request, they are required to tell you why. If you don't think the detail is sufficient, ask them why this is and what you can do to meet their qualification requirements. Remember that different lenders have different requirements.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Loans are granted on many different qualifications. The questions most lenders want to know the answers to include:
