YORK, Pa.-- Applying for a loan can be difficult, with many hidden factors that can reveal themselves once you are in the midst of the process.
A lender will pull your credit score, which will determine the interest rate you pay back on your loan.
After that, there are a number of other factors that will appeal to a lending officer, such as:
- Stability and Ability to Repay
- Stability – years worked for the same employer, lived at current residence
- Your income relative to existing obligations – housing expenses, loans, credit cards
- They’ll use those figures to calculate a debt to income ratio
- Ideally you want that figure to be less than 28% of income, including the new loan
Of course, this is just the beginning of the process of applying for a loan.
Today on FOX43 Morning News, Bob Marquette, President & CEO, Members 1st FCU, is stopping by the set with more advice on what it takes to get a loan.
For more information or financial tips and advice, you can visit the Pennsylvania's Credit Union site here.