You can embrace a fearless attitude when applying for a bank loan. Calling the bank, and discussing the paperwork that is needed for the loan application, made you feel victorious. You are on the right track, for approval of a bank loan.
Preparing for the bank Loan
The first order of business is to get a credit history report from the credit agencies. Look over the report throughly for any errors, such as, phantom charges you did not make, from companies, retail stores, and gas stations. Then look the report over again to make sure you are not a victim of identity theft. Your credit report must be clear of all mistakes, so your application for a loan won’t be denied.
Shopping for a Bank Loan
Do not hesitate to investigate the bank and their loan policies before you fill out their loan application. In addition to the questions you have already discussed with the loan officer, continue your inquiries
What is the minimum and maximum length of time to repay the loan? If your current financial status is reduced, how soon can you refinance the loan? If you choose the maximum length of time to repay the loan, are the monthly payments reduced, without penalties? Is there insurance available in case the loan falls into a default status, because of a physical disability, personal financial ruin, if the bank fails, or your untimely demise? All the bases need to be covered to protect your credit, when borrowing from the bank.
Types of Loans
Mortgage loans, come with a variety of labels. There are Adjustable-Rates, Mortgage Buy-Downs, Fixed-Rate, PHA, VA, and Interest Only Loans. Make the time, and visit the bank, where you have decided to apply for your loan, and talk to a mortgage loan officer.
Unsecured Loans and Signature Loans
These loans are based on having a good credit history and financial stability. This is important information the banks needs, because the loan has to be repaid. The funds can be kept in a primary or separate bank account for emergencies, the comfort of knowing there is money at your disposal at all times, or making purchases on a whim. Only your signature is needed for a line of credit. Installment payments are made until the loan is paid in full.
Secured Personal Loans
These secured personal loans are awarded everyday, as long as you have enough collateral, to cover the amount of the loan. The monthly payments and interest rates are higher.
Be prepared and take the documentation that the bank needs to see. Your personal credit history, the business financial statements,and pro-forma statements to see how profitable your business is going to be in the future.
If you have bad credit, some banks have programs that will help you to correct the errors on your credit report. When the bank is satisfied with your progress, they usually lend you a small amount to borrow, to help you build your credit rating.
When the results of your application for a bank loan have been, researched, certified and verified, the loan you applied for, is signatures away from being approved.