5 Questions Serious Lenders Will Ask You Before They Approve Your Loan Application

For financial stability, you’ll need to show prove of employment and prove that you’ve been with your employer for at least one year. If you are self-employed, serious lenders will love to see your tax returns or bank account statements in order to benchmark your annual earnings.

5. Do you have a solid repayment plan?

Lastly, lenders will want you to provide them with provide them with proof that you can afford to repay the loans. In essence, a lender will check out your income in relation to your expenses in order to know if you’ll be able to afford the monthly repayments.  Lenders will be eager to lend you money if your finances show an excess capacity in which your income is more than your expenses.

You’ll also have high odds of getting your loan approved if you can show proof of an emergency savings fund. Lenders will also consider you a prime candidate if you have investments some near-maturity conservative low-risk investments such as bonds or treasury bills.

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