Many borrowers demand favorable terms from their lenders. It is not a surprise for lenders and other banks to meet borrowers demanding the best terms possible or better terms. However, some borrowers go beyond their bounds and harm their requests by approaching the lenders with a list of demands or requests they feel they must obtain with their loan.
Sometimes, borrowers believe wrongly that they have the right to receive any kind of loan and the lender must meet any form of their demands. Most of the borrowers’ demands turn around the period of approval, the closing costs, and the rates of their loan.
Some borrowers demand to their lender to limit the interest rates of their loan, to suppress the closing costs, and to extend the period of payment while reducing the term of approval. The borrowers want to obtain the loan quickly but to pay it back over a long period without facing penalties such as high interest rates and additional fees. In some cases, the lender can consider a maximum repayment period of 36 months but the borrowers may demand to extend this period to 60 months. Such demands move the lenders to reject their applications.
If the borrowers demand to pay only 6% of interest rates while the lenders fixed the rates at 8%, the lenders can decide to keep his money instead of lending it. This is a way to force borrowers going back at their demands. This is the same with the terms and closing costs. It is normal to make one or two payments at closing but if the borrowers demand the suppression of such term, it can be difficult for them to receive the loan.
When making such demand, the lender may have a close look to the payment history of the borrower for finding out if the demand is just a preference or a money problem. A good credit score may not move a lender to release the fund. If borrowers make numerous demands even with good credit, the lenders may be reluctant when it will come to release finances. Many lenders do not want to deal with borrowers coming with many demands during the approval process because it is a sign that problems will arise even in the future and it will be hard to treat them.
In order to obtain a loan and keep a good relationship with lenders, borrowers must negotiate with them instead of making demands or requests.