If you want a loan do not argue with the lender

Does this really happen? yes. I have a long career in the finance and credit services doing loans for consumers and businesses. Along with this I have done inspection work for finance companies. When completing a credit application it has always amazed me when a potential borrower will ask "why do you need this information" Do customers not understand they are trying to borrow money from the company I represent not the other way around?

A little secret about lenders. The only objective the lender has is, how are they going to get paid back. That's how they make their money. They want to get as much information as they deem necessary to make a proper decision. If a borrower does not pay they lose money. Loan officers work hard to put deals together and are just collecting the information underwriters are wanting,

I once had a lender who required tax returns on any loan request over $15,000. The customer was trying to finance an unusual piece of equipment for $16,000 and this was the only lender I dealt with that was willing to look at the deal. The lender was requesting tax returns and companies financial statements. The customers response was why? I was new in the business so I went back to lender and asked why? The response I received still resonates with me today. The lender stated "Mark, if the customer wants to borrow $16,000 from us he needs to give me what I need, if he doesn't want to borrow the money he doesn't have to give me anything". Again, why is customer asking the why? If they wanted the money you think they would be very accommodating in giving information the lender was asking for.

Another secret; Lenders normally will not ask for information they do not need. As I solicit finance deals to lenders I will never ask for information the lender is not requiring. This could only mess up the deal. Once I worked for a real estate lender who didn't require a bank reference. They were more interested in the personal credit, real estate and income of the potential customer. A person in our office always got a bank reference and I asked why? If underwriting doesn't require it I'm not asking.

To sum it all up; if you go for a loan, when completing the loan application complete it as accurately as possible. If the lender ask for more information just provide it. Arguing with the lender why they need certain information is not going to help.