What Is Your Borrowing Power?

The amount you are able to borrow from a lending institution probably has not crossed your mind unless you have begun to think about buying property.

Likely, up until the point you are looking to make a significant purchase of some kind – whether it be a suburban house, a city business or rural land, you have probably considered your financial situation to be fairly simple.

You either have enough money in your bank account to cover rental payments, food, utility bills and entertainment, or you do not.

Besides loans between family and friends, you may be inexperienced in the world of borrowing and all that it entails.

If this is the case, it is best to remember that there are main areas of criteria that your lender will be evaluating to determine your borrowing capacity.

Financial representatives will look at your credit card limits, income and types of income, the size of your loan compared to the value of your property, number of dependants and their situation, the type of loan you want, general living expense and existing asset position.

A chat with your mortgage broker will help you determine the specifics of your personal borrowing situation.

The amount you are able to borrow from a lending institution probably has not crossed your mind unless you have begun to think about buying property.

Likely, up until the point you are looking to make a significant purchase of some kind – whether it be a suburban house, a city business or rural land, you have probably considered your financial situation to be fairly simple.

You either have enough money in your bank account to cover rental payments, food, utility bills and entertainment, or you do not.

Besides loans between family and friends, you may be inexperienced in the world of borrowing and all that it entails.

If this is the case, it is best to remember that there are main areas of criteria that your lender will be evaluating to determine your borrowing capacity.

Financial representatives will look at your credit card limits, income and types of income, the size of your loan compared to the value of your property, number of dependants and their situation, the type of loan you want, general living expense and existing asset position.

A chat with your mortgage broker will help you determine the specifics of your personal borrowing situation.