What Factors Influence Financing Approval? - Foundation Finance

What Factors Influence Financing Approval?

customer approved for financing

Offering homeowners low monthly payments, instead of having them come up with thousands of dollars for their entire project, makes home improvement more attainable for the average family. Home improvement financing is one of your most powerful sales tools.

Factors that Influence Financing Approval:

Credit Score:

A person鈥檚 credit score is the primary factors most lenders consider when determining whether or not to approve your customer for financing, with the FICO being one of the most commonly used scores. The FICO score is determined based on five main factors:

  • Payment history: 35%
  • Amounts owed: 30%
  • Length of credit history: 15%
  • New credit: 10%
  • Credit mix: 10%

Application:

Some companies don鈥檛 look much farther than your customer鈥檚 credit score, but others, like Foundation Finance, consider a variety of factors. Financing applications have questions that demonstrate your customer鈥檚 full financial situation, such as what their debt-to-income ratio is, how long they have been at their current job, how long they have lived in their current residence, and other factors that may show credit worthiness.

Maximizing Approvals

Foundation Finance is a full-service lender and can help your customers with a wide range of credit profiles. Encourage your customers to file joint credit applications whenever possible and emphasize the importance of accurately listing all income. This will ensure your customers receive the best chance for approval.

How to Submit an Application

Helping your customers finance their home improvement project is simple when you partner with Foundation Finance. Becoming a dealer is free, easy, and just takes a few minutes. Once approved, you can submit customer financing applications by email, fax, a phone call to the credit team, your personal LaunchPAD Credit App link, or online via the LaunchPAD dealer portal.

Enroll in the Foundation Finance dealer network today or contact us for more info:聽1-855-241-0024, [email protected].

Note: Use of the terms "Loan," "Lender" and "Borrower" is for ease of reference only. Financings are in the form of retail installment contracts ("RIC").

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