Blog|Bosveld & Roach Founders of Nu-Vista Realty

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Michael Bosveld

 Direct: 519 701-1506
 Office: 519 438-5478
 Fax: 519 438-7355

Anthony Roach

 Direct: 519 701-1260
 Office: 519 438-5482
 Fax: 519 438-7355

Qualifying for a Loan

When qualifying for a loan, your lender will always look at the 5 Cs, I’ve listed them below, so be sure to have a look to see how the 5Cs can help with getting approved for a loan.


1 Credit history - Your lender will want to make sure when you've borrowed money, you've paid it back, they may also look at your credit score. Generally the higher the score you have, the lower risk you are to the lender and are more likely to get a loan.


2 Capital - This represents, savings, investments and other assets that you own that if you do lose your job, as this can be helpful if you run into some setbacks while trying to repay a loan.


3 Collateral - When it comes to something like a mortgage, you're putting your house up as collateral. Any existing debt secured by that collateral will be subtracted from the value, meaning that the remaining equity will play a factor in the lending decision.


4 Capacity - In short, capacity is debt servicing. Lenders will look at your income and employment history and determine if you are able to comfortably afford payments.


5 Character - Lenders may want to know how you plan to use this loan amount. Other factors, such as environmental and economic conditions, may also be considered.


Here are some other things to keep in mind when applying for a loan.


Verifiable Information

Bring in all types of information to verify where you work, how much you are making and any other types of paperwork such as: pay stub, employment letter, bank statement confirming direct deposit, investment statement.


Build Credit History

If you are looking to build your credit make sure that you are only buying what you can pay off in full every month, the key is to show your ability to pay back money that you owe. When you do pay, make sure that you pay on time every month and one late payment could make a significant impact on your credit. Here are some helpful tips for helping to maintain your credit rating.


How Do I Qualify For a Loan If I Have Bad Credit?

Some loans are specifically designed for borrowers with less-than-perfect credit. One of the most important things that all lenders look at and look into is proof of sufficient income or funds. Financial institutions want to make sure that borrowers are able to repay the loan back, therefore they will look into if you earn enough to make timely payments. Many lenders also require a higher down payment because they deal with a riskier set of clients, compared to other clients. Be sure to check out some helpful tips to get a mortgage with bad credit. 



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805 Adelaide St N
London, ON N5Y 2L8

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