Alternatives for bankruptcy finance and qualification
Lenders extend offers for profit, based upon an optimized business model. All loan and mortgage applicants should follow the same practice when shopping for bankruptcy finance options. Discovering the factors that motivate a specific lender is essential. Of course, most lenders are similar, yet unique attributes of individual lenders also plays a role in the approval process.
What do lenders want?
All lenders are risk averse, and hope to find a low risk applicant for above market rates. Individual loan officers place different weight upon perceived risk potential, depending upon their personal experience with past defaults. Because of these slight variations, talking with several loan officers should produce a range of offers. Based upon these offers, the most successful applicants exploring finance options will take time to discuss the offer, and more importantly, the basis upon which rates are determined.
Armed with several offers, whatever they may be, these offers can then presented to the next loan officer with a reasonable explanation of why the perceived risk and penalty should be discounted. Presenting only your best offers also creates an artificial upper limit for a loan officer competing for your business. Over time, a diligent applicant can substantially influence interest rate offers downward, and eventually achieve near market rates.