Simple Tips For Getting Your Loan

Simple Tips For Getting Your Loan

Simple Tips For Getting Your Loan
So,​ you​ want to​ get a​ loan?
Here are some simple tips that will help you​ make an​ informed decision about what kind to​ get,​ and who to​ get it​ from .​
First ask yourself: do you​ really need it?
Can you​ manage without it?
Is it​ for something frivolous,​ like a​ holiday?
Could you​ get the​ money by other means: part-time job,​ from a​ relative,​ the​ sale an​ asset?
Don't put a​ monkey on​ your back if​ you​ can avoid it .​
A loan varies according to:
The amount borrowed;
The interest rate;
The type of​ rate (fixed or​ variable);
The term (repayment time in​ months or​ years);
Deposit (downpayment);
Associated fees (broker,​ origination,​ prepayment etc.);
Insurance required by the​ lender .​
You are buying money for more than it​ cost the​ lender .​
Simple .​
It's a​ mistake to​ only care about the​ interest rate; there are also arrangement fees and prepayment penalties to​ consider .​
Many 'no fee' credit lines have a​ pre-payment penalty .​
This is​ how brokers and lenders make their money .​
Work out the​ total cost of​ your loan before committing .​
To ensure you​ get the​ best terms,​ keep your credit-line as​ small as​ possible .​
Loan officers tend to​ count the​ total line of​ credit available as​ a​ liability.

Pay off small debts before the​ due date .​
Cancel credit cards you​ are not using .​
Consider their interest rates and fees,​ when deciding which cards to​ keep .​
If your spending is​ out of​ control,​ don't put your home at​ risk by getting a​ home equity credit line to​ pay off your credit-card debts.
Shop for rates when the​ market is​ calm .​
Rates change from day to​ day,​ so compare lenders .​
The quotes you​ get should all be from the​ same time period .​

Submit a​ neat application form; it​ shows you're business-like and efficient .​
It will be read and assessed by a​ human being; appearances count .​
Only pay up-front fees to​ well-known institutions,​ or​ ones highly recommended by trusted sources .​
Don't sign documents without reading them .​
As soon as​ possible,​ before you​ close the​ deal,​ review the​ documents you'll be signing,​ and make sure you​ understand them,​ so you​ won't have to​ sign them in​ a​ hurry .​

Keep a​ copy of​ every cheque you​ write for your loan .​
If you​ call your lender about your loan,​ make sure you​ get the​ full name of​ the​ person with whom you​ speak .​
Make a​ note of​ it .​
You may be dealing with a​ large bureaucracy,​ and will need to​ refer to​ this conversation later .​
If you​ find yourself in​ a​ dispute with a​ lender,​ don't send correspondence to​ the​ same address you​ send your payment .​
You need to​ deal with the​ decision-makers,​ not the​ account clerks.

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