by David Riel

Created on: April 28, 2007   Last Updated: May 16, 2007

Lenders have broad experience in evaluating credit risk. There are things they like to see in a loan applicant, and if these are missing, your chances of getting the loan diminish.

Here are the seven things that a lender is looking for in you, when you go to apply for a loan.

SEVEN THINGS LENDERS LOOK FOR IN LOAN APPLICANTS

1. A steady employment history. Lenders love to see someone with a good, stable work history. They'd rather see an applicant with a regular, steady job, than someone who may make more money, but only works seasonally or has gaps in their employment.

2. You're a homeowner. Not being a homeowner isn't necessarily fatal to your loan application, but it sure helps to own your own home.

3. You're married. Now, I'm not suggesting that you pop the question just because you're applying for a loan, but lenders do like to see that loan applicants are married.

4. You have a credit history. The lack of a credit history makes lenders leery. It's worth it to get a credit card just to establish a credit history when you're starting out.

5. You have a good credit score. This is a big one, up there with having a stable job. This means that you have a good credit history, and that you pay your bills on time.

6. You have a university degree. Lenders like to see that you are a university graduate, and in fact often give special deals to recent grads. They do this because they believe that education leads to higher earnings, and is generally correlated with better credit risk.

7. A positive net worth. If your assets exceed your liabilities you have a positive net worth. Lenders like to see that you have a positive net worth, the higher the better.

Now that you know what the lender is looking for in you, the loan applicant, you'll have a better idea of your chances of getting that loan.

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