Applying for a loan Tips
Read these 5 Applying for a loan Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Personal Loans tips and hundreds of other topics.
Prepare an accurate balance sheet
If your lender asks you to prepare a balance sheet
as part of your loan application, don't panic,
it's not as intimidating as it sounds. Be thorough,
don't overestimate your assets and don't underestimate
your liabilities, your credit reports and appraisals
will be used to verify your information.
Several common PC packages, have built in balance
sheets that you can customize easily to fit your
needs. However, if you do decide to go the old
pencil and paper method, remember that Assets=
Liabilities + Capital. You would be surprised
at the number of applicants that provide balance
sheets that do not balance.
If you need some help in the preparation, this
site has some useful tips and guidelines that
you can customize to fit your needs.
http://www.office.com/global/tools/frameset?parameter=ob_tools/finance/balance_sheet.html?id=384
Improve your Chances for obtaining a loan
To improve your chances, be well prepared for your meeting with the loan officer. For most loans you'll be asked to present W-2 forms and tax returns for the last two years, your most recent pay stub, credit card account numbers and balances; and bank, brokerage, and mutual fund statements.
Don't skip questions on your loan application
One easily avoidable reason for delay in getting a loan approved is that all the questions on the loan application weren't answered, or the answers were unclear. To speed up the process, make sure that you fill out the application form in its entirety, answering all questions about salary, employment, assets and debts. Include account numbers for all bank and credit card accounts, and if there is a problem in your credit or work history, attach a note explaining the circumstances.
Do I have to show that I co-signed for a loan when I apply for a loan?
You have to indicate on your loan application that you have co-signed for a loan. The loan officer will use this information in computing your liabilities
If you must borrow money yourself, after co-signing for someone, make a point of showing a record of that person's prompt payments. This will help assure your lender that you will probably never be called on to cover that debt.
Choose your Lender Carefully
Most consumers shop for the best rate, but they
fail to check up on their lending institution.
Is your bank in compliance with Hud's lending guidelines, and is in compliance with Federal
Regulations as well as having sufficient capital
so that it will not fail?
Dealing with a bank that has inadequately trained personnel or that is in danger of failing can be a real horror story if you have a loan with them.
Several on-line bank rating companies will provide you with an overall rating of your bank. They get this information from the quarterly reports a bank files, their compliance rating, and their community re-investment rating. This site will give you a snap shot
view of your bank's overall health and compliance with banking regulation.
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