Factors That Impact Loan Lending Rates in San Antonio

Just about everyone needs a loan from time to time. From buying a home to making improvements to property, working with the best lender is the way to go. As part of the deal, the debtor wants to tap into the most competitive Loan Lending Rates in San Antonio. Here are some of the factors that will influence the kind of rates that lenders are willing to provide.

Current Debt to Income Ratio
Many lenders look at the amount of debt that loan applicants are already carrying and compare that to the monthly income they generate. For debtors who have relatively little debt, there is less of a risk of default. That lower risk will translate into being able to command more competitive Loan Lending Rates in San Antonio, since the lender has more reason to believe that the debt will be paid off according to the loan terms.

Credit Score and History
Lenders will also look closely at how well the applicant is managing those current debts. Have any late payments occurred during the last one or two years? Does the debtor tend to pay more than the minimum each month on unsecured debts like credit cards? Chances are that the lender will pull credit reports from at least two of the three major bureaus. If the applicant has been less than diligent with managing current debts, or had some sort of major financial crisis in the last few years, rest assured that those events will have some impact on credit scores and the rates that lenders are willing to extend.

Negative Credit Information
If the debtor has defaulted on any debts in the last ten years, or been through a bankruptcy, that information will appear on the credit reports. Rest assured that lenders will want to know more of the circumstances behind those incidents before proceeding. Depending on the information that the debtor can provide, the lender may reject the application, make an offer with an interest rate that is above prime, or extend an offer with a relatively competitive rate of interest.

For more information about loans and locking in the best rates, visit the website and take a look around. Doing so will help the consumer know if now is the time to apply for a loan, or if spending a little time paying off some debt would increase the odds of receiving more competitive terms.