What Are The Traits Of A Great Property Lender?

Besides finding the right lender for you we also need to take note on exactly what we CAN afford on a month to month basis. A lender (or a credit card company for that matter) might look at your income and be willing to borrow you more many than you’re comfortable paying every month. Being house poor makes absolutely no sense even if you can technically “afford” it you won’t be spending any time there because you’ll be at work barely making the payments. Its generally considered your monthly mortgage payment should never be more than half of your monthly income.

(This is a contributed post, for more information about my compensation please read my disclosure policy)

There may come a time in your life when renovation projects just don’t cut it, and you might look to purchase or rent a new property instead. Deciding to buy or rent a home is a big decision and it will often be the largest investment you make in your life. When it comes to choosing the best broker and lender for you, there are many things you must consider. 

If you are at a certain age, it will be harder for you to gain a mortgage however you may find it easy to rent a property. If you struggle in terms of money, it is important for you to gain a clean cut budget before you begin to explore lending. This applies whether you are lending for a property to live in yourself, or whether you are lending in order to buy a home for rental purposes. 

Sadly, some brokers do not follow through on their fiduciary duty and may even gain commission for pointing you in the direction of an unsuitable lender. So, if you want to cut the middle man out and do your own research, how do you do it? 

Today we want to discuss lenders and what makes a lender stand out from the crowd. Choosing a lender can be a daunting task, which is why we have pinpointed the good traits for you to look out for. 

They specialize in one area

The first sign of a good lender is specialization.

Imagine you have been in a car accident. You would want to choose a lawyer who specialists in car accident claims to ensure you get the best service. The same applies to lending, and if you are looking for a property to buy and let out to tenants in particular, a rental lender such as Visio Lending is a better option than a lender who covers both rental and investment.

If you were searching for a home as a renovation investment to sell on, you would want to choose a lender who would be able to provide expert advice in this field. Always find a lender who is an expert in their field as they will be able to provide the best service. 

They ask questions 

When you approach a lender for a rental or mortgage, they should ask you lots of questions about what you want and need. After all, how will they best serve your specific case if they don’t gather sufficient intel? If you approach a lender and they don’t ask you any questions, see this as a red flag and back away. 

They offer guidance 

When you are searching for the right mortgage or rental loan, there are a lot of lenders out there who will simply offer you the basic package without learning about you and your needs. A good lender should talk you through a few different options and ensure that you understand what you are signing up for before you sign on the dotted line.

Look for a lender who is willing to guide you through many options until finding the one that works best for you. 

They find your comfort zone 

Your budget is NOT the same as your comfort zone, and a good lender knows this. Just because you can technically afford £900 per month for a mortgage or rent doesn’t mean this is realistic.

A good lender will work with you to find the value you are comfortable with paying with some wiggle room. They will never stretch you to the end of your budget because there is a risk that one bad month could leave you behind on your payments.

(This is a contributed post, for more information about my compensation please read my disclosure policy)