No matter what the reason, getting a mortgage or home equity loan can be challenging these days. In Connecticut and around the country, banks are wary of giving out loans just in case things don’t go well. We’ve seen what happens when banks are too lenient about mortgages, and nobody wants a repeat of the past six years. But a lot of people in CT need mortgages and home equity loans or lines of credit for perfectly legitimate reasons. How can you convince your bank that you’re a good investment?
Be Prepared
If you’re hoping to get a mortgage in order to purchase a new home, be prepared for a lot of questions about your financial situation. Bank statements, investment information, and information about your job should all be readily available. Any down payment should be prepared. In addition, you should be prepared to be rejected at first. Don’t take a rejection as a disaster. Instead, find out why you were rejected and see if you can improve your chances for the next time. It’s likely that you can work with your bank to find a way to get you that mortgage.
If you are hoping to get a home equity line of credit or loan, be prepared for intensive financial scrutiny. Both mortgages & home equity products are tough to get, but home equity is the tougher side. The real estate market is still fairly low and it’s growing slowly, which makes banks wary about giving out a loan with your house as the collateral. Most likely, banks in CT already own a few houses that have been foreclosed on, and they can’t sell them for anything close to what was owed on the previous mortgages.
Your Story
Another way to improve your chances of being granted mortgages & home equity loans is by having your story straight. Why are you applying for a loan or mortgage? What do you expect to invest in with the money. What are the chances that you will be able to easily make the payments? And how can you guarantee that you will not default on your loan? If you can answer these questions, your mortgage or home equity loan officer is going to be much more likely to grant you the loan.
It may not be easy to get mortgages & home equity financial products in CT these days, but if you’re prepared and understand what is expected of you, you’ll have a much better chance of success.
Essex Savings Bank in CT has been around for over a century and a half. It was founded by people who wanted to keep their money close and have a great, trustworthy bank. Getting the right mortgages and home equity loans is easy with Essex Savings Bank.
