How to get a home loan
If you are about to build your own house, look at possibilities, that are brought by a construction loan. If you want to buy a house, you can turn on a finance company and try a home loan.
Home loan is a little bit treacherous. Don’t let you be confused and don’t pounce on the very first offer. Go trough all possibilities and then choose the one, which will match your request the best. Focus on the system of paying off. To think over advantages and disadvantages of fixed or variable repayments will surely pay. Compare the repayments rate with other tariffs.
Compare also possibilities of payment (the internet banking, ATM and suchlike), the possibility of changing the repayments rate during paying off, the possibility of paying the loan off sooner etc.
Think ahead. An offer can seem perfect for you now, but in a year it can become unbearable. Think about the possibility of loosing your job, establishing a family or having to take care of your parents.
Don’t be afraid of asking. Be inquisitive and find out as much information as you can. Only this can help you to avoid paying something, which you haven’t counted upon. And above all – before you sign anything, read carefully all documents.
HOW TO GET A HOME LOAN
HOW TO GET A CONSTRUCTION LOAN
How to get a construction loan
You want to build and you don’t know where to take money? One possibility is to borrow it from lender. A construction loan can help you solve the problem. However, what do you have to know in advance?
- How long is the money borrowed for? Consider well how you’ll be able to pay the loan off. You can get it for up to several tens of years, possibly get a short-term loan, which you’ll finance by (transform it to) a classical mortgage loan.
- The solvency and the credibility of a company. Think over well where you’ll draw the money from and who you’ll pay it off to. Still it’s true that the best financier is a person, who you have your own good experience with or who is recommended to you by your friends.
- Find out the tariffs. Inquire about fees, which you’ll have to pay in the connection with the loan, in advance, so that you won’t be surprised after. Find out also whether you’ll have to pay the loan off immediately or payments can be postponed until the building of the house is finished.
- Prepare all documents. The person, who will lend you money, will want to know, what you want it for. Have all important documents at the tips of your fingers.
- Verify all possibilities, let specialist to advise you. Don’t let you be taken in by beautiful promises. And don’t forget about insurance.
HOW TO GET A BANK LOAN
How to get a bank loan
Whether you want to finance whatever, by the help of a loan, be prepared that the first worry of a bank is to verify, whether you’ll be able to pay the loan off. On the other hand, banks wouldn’t survive without loans. If they verify that you are „reliable“ client, they won’t want to release you.
How to help yourself to get a bank loan?
- Secure it with something (e.g. your house, the life insurance). The bank will lend you money more easily; perhaps it will also reduce interests.
- Be persuasive. Be prepared for the negotiation with the bank, so that you’ll be able to answer the questions as: „Why you want a loan, how high, what for, how you’ll pay it off and suchlike.“
- Be prepared. Show that you mean it seriously with the loan, that you’ve discussed all possibilities and counted in unexpected difficulties. To find out some basic facts about a particular loan in advance is a good thing. The bank agent will see that you’ve already occupied you with it.
- Be coming back. If your first loan is paid off without any problem, you’ll become likewise much more trustworthy for the bank. When you ask there for a loan for the second time, you’ll have a few points extra already. Choose „your“ bank according to it already at the first loan.
HOW TO GET A MORTGAGE LOAN
How to get a mortgage loan
A mortgage loan is a type of a loan, which you can use to finance your new accommodation. His main feature is a realty guarantee, which the mortgage is connected with. It’s the easiest way to buy a new accommodation not only in America.
What you pay for a loan?
The loan is being paid off in the long term. You send a predefined amount to the account of the lender every month. This amount can be the same all the while you’re paying off (FRM – fixed rate mortgages, common in the US) or differ (ARM – adjustable rate mortgage, e.g. repayments of percentage height of the outstanding loan can be recounted in accordance with the range of existing paying off every month – advantageous for people with unstable /changing income), possibly the combination of both possibilities. Conditions of amortising the whole mortgage differ as well – whether to pay off gradually or if you come across with a larger sum of money, pay off a bigger part at one fling. Of course there is an accrual of the borrowed amount by interests, so you pay off more than you’ve borrowed.
Ground of a loan: value of the property
The value of the property is an important circumstance for a calculation of the loan itself, interest and tariffs. It can be fixed on the basis of the purchase price of realty (especially in case of a loan for buying realty), an appraisal licensed specialist or an individual estimate, which both sides will agree on, especially where an official process isn’t possible.
To the lenders? You don’t have to!
The majority of matters can be arranged from the comfortableness of your home, only with the use of e-mail and the telephone. Realize, whether you want to probe all possibilities on your own or you let agents, who have the overview on the mortgage market, to advise you the best possibility for your particular situation. Anyway, the situation can change from day to day in consequence of current collapse of the mortgage market.
You can find out more on:
Department of Housing and Urban Development (HUD)
Government National Mortgage Association (GNMA, also known as Ginnie Mae)
Federal National Mortgage Association (FNMA, also known as Fannie Mae)
Federal Home Loan Mortgage Corporation (FHLMC, also known as Freddie Mac)
HOW TO GET A BUSINESS LOAN
How to get a business loan
A business loan has an unambiguous purpose – to support your enterprise. Lenders concentrate not only on big clients, but also on small business.
Every private person and businessman has to prove that the finance company can consign him its money without any fear that he won’t be able to pay the loan off. The best way is to stick to one lender and pay everything in time. Organisations like such clients and providing of new loans isn’t any problem.
Small business loan: It’s always the worst for the first time
However, if you go for money to a lender for the first time and moreover you are a small businessman, prepare yourself for vindication of your interest. When you go to an appointment with a financial agent, try to apply some of our pieces of advice:
- Secure the loan by your possession (e.g. by a house) or the third person.
- Display your will to pay everything off properly and in time at the meeting with an agent
- Behave self-confidently, but politely at the meeting. Be prepared for questions such as: „What you want to use the money for„ and „What are you going to pay the loan off from“.
- Have with you all ordained documents (ask about them already at the moment of arranging the appointment).
- Come to the appointment on time. Answer the questions truthfully, but to the topic.
- Make a summary of possibilities in advance and act as if you’ve already occupied yourself with the offer of the given finance company.
- Show that you’ve thought over also a backdoor – discuss possible dangers, ask about the process when you aren’t able to pay off, possibly about an additional insurance for this situation.
- Don’t make concessions from your demands. If you set your priorities in advance, look for other offers rather than forgiving your demands.
- Choose such company, which provides loans of similar extent. Absolutely the best possibility is then the institution, which has some experience in the area of your business.
If you blunder and don’t know what to do, contact Small Business Development Centre (SBA).
HOW TO GET A LOAN
How to get a loan
you ask? We’ll try to outline basic options for you.
Whether you want a business loan, a mortgage loan, a construction loan, a home loan or simply a bank loan for whatever, you have to pass a process of solicitation and confirmation of the given loan, which is very similar for all types. You have to clarify why you want the loan, how you want to pay it off, why the lender should trust you. Then you’ll wait for confirmation, receive the money, invest and then you only service the debt. Therefore we can associate following pieces of advice with all types of loans.
Basic rule: Don’t hurry!
Don’t let you be dragged in a contract, which you don’t agree with. Take your time. Pay attention to it mainly in these situations:
1) Choice of a finance company
Decide for companies, you’ll address with your request, in peace. Think over whether you want to apply for a loan directly a finance company or you let a broker to advise you. Both possibilities have their advantages and disadvantages. If you decide to check the loan market for yourself, try to find out as much information as you can.
Choose such companies, which are close to your area. To demand a loan for a car from a company specialized for mortgages usually also isn’t a good choice.
2) Survey of possibilities
You have an amazing tool at your disposal – the Internet. Look at official sites of given companies and find out their offers. If nobody in your vicinity has any experience with given institution, look up some users´ opinions in discussion forums. Oftentimes you find there important information.
Ask also particular institutions for information. Ask, whether all tariffs and conditions are really mentioned in promotion materials.
3) Proceeding of conditions
Specify in advance, what you expect of the loan, what parameters are important for you (the length of paying off, the rate of your repayments, the tariffs amount) and to what parameters you are ready to make concessions. Then, with this vision, look for such company, that will approach with its offer to your request the most. It’s your free decision.
4) Waiting for contribution
After having negotiate possibilities with an agent of given finance company you have to wait till your request for a loan passes the contribution Ask at the appointment, when approximately it will be decided. Respect the date and don’t address the institution yourself. You can make it worse for you.
5) Signing the contract
Before signing any contract read thoroughly the whole text. If you don’t understand something, require an explanation; possibly consult your lawyer about the form of the contract. Nobody must force you to sign, so why don´t verify that what you sign is all right. Your signature is binding.
Too broad topics
The loan market is very extensive and principally it changes very quickly. To catch its current state means to inquire about news daily. Therefore we don’t try to bring any detail information about individual possibilities in individual states of the US, but we want to give you general advice, how to begin if you want to know, how to get a loan.