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LoanImprove Loan Optimization Process

What are your objectives for getting the loan?
Lendersa Loan Optimization is a process that aims to achieve the best possible loan based on the borrower’s financial situation and his needs.

Each optimization is tailor-made to your financial profile and goals. Before you start the process, you need to enter your non-confidential financial information as an unsubmitted loan request. Then use the Optimization Engine below.

Do these six simple steps:
1. Select Urgency, 2. Select your first priority, 3. Select your second priority, 4. Select the minimum time for loan duration, 5. Select the maximum length of the prepayment penalty, 6. Click the optimization button and study the solutions.

Urgency

  • 3-10 days
  • 11-20 days
  • 21-45 days
  • Not urgent- just shopping

Priority #1

  • Lowest Payments
  • Lowest Rate
  • Lowest Fees
  • Max Loan Amount

Priority #2

  • Lowest Payments
  • Lowest Rate
  • Lowest Fees
  • Max Loan Amount

Minimum Loan Duration

  • Any
  • 6 months
  • 12 months
  • 18 months
  • 2 years
  • 3 years
  • 10 years
  • 15 years
  • 30 years

Maximum length of PrePay penalty

  • Any
  • None (No prepay)
  • Max 3 months
  • Max 6 months
  • Max 9 months
  • Max 12 months
  • Max 18 months
  • Max 24 months
  • Max 36 months
Find Optimization Solution

Lendersa LoanImprove™ engine (Loan Optimization) can optimize your loan request to increase your chances for a better loan.

The optimization process finds potential solutions, which are adjustments and improvements to fit your Loan Request to the lenders’ underwriting criteria.

Why Does Optimization Work?

The principal concept behind loan optimization is this: Very small changes in the loan request can translate to a huge difference in loan results. Lendersa Optimization Engine provides you with 5-8 optimization solutions for each scenario. Not all solutions are possible, but when you apply even one or two, your loan fate can change from denied to approved and you will get better loan programs with lower rate and fees.

Why is it impossible to figure out how to get a better loan without Lendersa®


To compare and analyze data, you first need to have access to the data. Lendersa® holds Rate sheets and guidelines of thousands of loan programs. Even if you have access to the data, you will still need to compare it against your financial information, the property, and your goals. There are too many factors to consider without a strong computer brain. That’s true for a single loan program let alone millions! Below is a list of the most common items which either help you or stop you from getting a loan.

These are some of the items which will help you with getting your loan. The more, the better:

  • Credit Score
  • Verification of Income
  • Income
  • Job stability
  • Down Payment
  • Property Good Condition
  • Liquid assets
  • Equity in real estate
  • Exit plan
  • Experience (For non-owner, rehab loans)

These are some of the items that will prevent you from getting your loan. The less you have, the better you are:

  • LTV (Loan To Value Ratio)
  • Loan Amount
  • DTI (Debt to Income Ratio)
  • Expenses
  • Loan to Cost (mainly for loans involving constructions)
  • Bankruptcy, Foreclosure, Short Sale
  • Mortgage obligations
  • Other debts obligations (Credit Cards Installments)

Your loan approval hangs in a delicate balance!

Other items could also help or prevent you from getting loan approval. What is important is the relationship between these items and how the lenders use them when determining the fate of your loan. Many items cannot be changed but some, if changed even slightly, could bring a tremendous improvement for your loan results.

The fate of your loan, your rate and terms are being held on a very delicate balance even when you are dealing with one lender. For certain types of loan, It becomes hundreds of times more complex when you factor in the differences in underwriting guidelines among thousands of lenders.

Here are two simplified examples of how optimization could work, with only two items, Credit and LTV. In actuality, Lendersa takes into account all the financial factors you enter and calculate millions of combinations to bring you possible solutions.

Example of a potential solution: If you can reduce the loan amount you request slightly only 1%, it could change the fate of your loan.
Note: For demonstration purpose, only two factors considered (Credit and LTV). Lendersa analyzed over 20 factors that could change the results from denied to approved or affect the interest rate, fees, and other terms and conditions of the loan.

Example of a potential solution: If you can improve your credit score by 25 points, it will allow you to get a higher loan amount.
Note: this solution will be available only if you are not in a hurry to get a loan. In addition to Credit and LTV Lendersa analyzed over 20 other factors such as Income, verification type, cash reserve, loan purpose, loan amount, property condition, etc. The combined effects determine the proposed solutions.

Filters:

Filters are very useful to narrow down loan programs to your needs:

  1. When you get a large number of loan programs in the results
  2. When you set your mind on a specific kind of a loan program
  3. You wish to eliminate unwanted features from the loan results

Sorting:

Sorting is used to quickly sort out the results based on:

  • Lowest Rate
  • Lowest fees
  • Lowest APR
  • Loan Chance of Success Score

By default, all the results are sorted by the Loan Chance of Success. If you change to sort by Lowest Rate, the 2nd sorting category will be Loan Chance of Success. So, for example, if there are three results with 5% rate the one that will show on top will be the program that has the highest Chance of Success score.

Strategy on how to optimize a loan request

The target of optimization is to get a high Success Score to your loan request. Without a good score, you are jeopardizing your chance to get the loan you need. While a good score is important to any request, it becomes vital for loans that must get funded in a very short time. If you miss the opportunity to receive loan proposals from several lenders when you submit your loan request the first time, you may not have enough time to correct it.

The best kind of optimization is achieved by improving your qualifications. But most qualification improvements take 3 to 6 weeks to complete. When you need to get funding fast, you may have no choice but accept a higher rate, higher fees, or a reduced loan amount – in order to get the loan done on time.

Too many results:

If you get hundreds of result, you should optimize the request to lower the number of results. Use the optimization engine and the Filters to narrow down the results but keep the Success Score above 80.

How to optimize Step by Step

  1. Complete the loan inquiry and click Request a Loan.
  2. Register as a borrower. Social security and othr confidential information are not needed.
  3. Enter a strong explanation of the loan purpose (Essential for hard money loans).
  4. Enter a convincing exit plan (For short term bridge loans).
  5. Save the loan request as an Unsubmitted Request.
  6. Go through the list of options and see how the results change.
  7. If you are satisfied with the results, submit the loan request.

Timing is a big factor when it comes to implementing Optimization Solutions. There are a lot more possibilities to optimize a loan when you are not in a rush to close the loan. For example, improving your credit rating is very effective for improving every aspect of any loan, yet it is impossible to accomplish in under ten days. If there is no chance of implementation because of lack of time, the solution will not show as a Potential Solution for that optimization cycle.

Conflict can happen when the priorities are conflicting with one another. For example, reducing interest rates can have the opposite effect on the fees. Borrowers can select a lower rate with higher fees. The conflict between low-interest rate, fees, and pre-pay penalty can be mitigated with smart planning. Read How to decide about pre-pay penalty.

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