The prospects of becoming a home owner in Kenya can be very daunting especially if you do not have the money required to make your dream come true. It is in such instances that potential home owners consider the possibility of approaching a third party to get the finances they need to back their dreams of home ownership. Borrowing is not easy but a good option in such cases.
If borrowing is in your plan, then you should know what lenders consider before advancing a loan to their clients. With this knowledge then you will adequately prepare yourself and increase your chances of success. Without adequate preparation, chances of your loan request being rejected are very high.There main criteria used when it comes to credit appraisal is what is commonly known as the 4 C’s of credit. If you score high in this then you are that much closer to your credit facility.
Your ability to qualify for a loan is all dependent on, first and foremost you as a person. This is one instance where to qualify you need to put your best foot forward and assure the lender that you can be trusted with their money. The lender will depend a lot on their first impression of you to decide if they like you or not. They will then dig into your past and present, trying to figure out if you are clean. All your dealings must be above board. Here is where your reputation will precede you.
Showing clearly that you are more than capable to handle the loan will work to your advantage. If you are at a place where your needs are more than the money you have, that loan will remain a distant dream. This is what makes taking multiple loans very hard. This also ensures that if you do qualify for a loan, you are only given what you can handle.
In business, capital is simply indicated your personal stake in that business. The higher your stakes in a business the more committed you are and the more likely you are to succeed. Lenders tend to favor people who have invested heavily in their business. If you are not in business, the lender will consider what you are worth to determine your potential. You have to show that what you owe is lower that what you own. This is further assurance that you can easily pay for the loan without defaulting.
Collateral remains a very important point of consideration when it comes to loaning out money. Collateral gives you something to hold on to and use in case your money is not paid back. Any lender will ask for a collateral that is similar in worth or higher in worth to the loan you wish to borrow. Collateral gives peace to the borrow that whatever happens, their money will remain safe.
The micro and macro economic environment surrounding you is yet another key factor that is taken into consideration. These factors have a direct impact on your ability to pay back your loan. Sadly, these factors are normally out of your control but they determine whether you are likely to succeed or fail, whether your income is likely to go up or go do. Pray that these factors work to your favor.
These are the key factors that a lender will analyze in order to ascertain if you qualify for a loan, and if you do, how much you can access. Before seeking financing, you can do a self analysis of the above factors and ensure that your score is high. This will ensure that you qualify for the loan that you are applying for and increase your chances of becoming a home owner in Kenya.