Learn What Banks Want

Banks are crumbling all around us. The Royal Bank of Scotland is receiving a $41 billion dollar bailout.... That's Billion with a capital 'B'! The EU is crumbling, the Bank of Japan needs more liquidity and CitGroup is trying to divide itself again.

With all these problems with banks, how does anyone get a loan. It's simple, there are three things that banks are looking at right now. Provide the bank with these things and the underwriter will say yes to your loan.


If you are tired of chasing dollars, pay heed to this advise and you'll get the loan you need.

1.) Decent Credit: You don't have to have perfect credit, but you do need decent credit. If you have some problems you need to begin to make the effort to solve them. Showing the bank you are concerned about your credit and doing what it takes to set things right will go a long way!

2.) Low LTV: LTV means Loan To Value. The banks want security and they want you to invest in your property. You can get a loan if you have some down payment. In cases where you are needing a refinance, show the bank you are willing to leave some equity in the home and you'll be the golden child! Approval here I come!

3.) Income!: How are you going to pay the loan back? The bank wants the answer to this question. They calculate all of your monthly debt payments (including the mortgage you are applying for) and divide by your income. They want to see a debt to income ratio of 40% or less.

Now there are some compensating factors. Having a lot of money in the bank as a reserve will help and showing continuing declining balances on revolving debt over a period of months and big bonus. The bottom line is that banks are making loans, you just have adjust to the new lending realities.

Michael Gross is the President of Dividend America Mortgage. Dividend America provides all types of loans to all kinds of people in every type of situation. Visit http://www.dividendamerica.com/ or email Michael with your questions. mgross@dividendamerica.com or call 770-350-7373.