Fair Banks Group-business financial services

5 Tips For Getting Your Bank Loan Approved

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Many times a person will have the need to apply for an installment loan when they have decided to purchase a new car or a home.  With a loan such as this, it is normally for a larger amount of money at one time to make the purchase.  It allows the borrower to repay their loan in installment payments normally on a monthly basis.  This loan is usually due the same day each month and as long as it is a fixed loan is the same amount for each payment.  This eliminates any surprises and helps a person to repay their loan on easier terms.

Why Should You Prepare Before Applying?

In today’s economy lenders are using tougher guidelines to choose who to issue loans out to.    With the tough economic times many lenders have had many loans that are not being paid back because of job losses.  That makes it harder for the normal consumer to get approved.  It is important to make sure your credit report stays up to date and accurate.  Make sure you qualify for a lender before applying; rejections of loans will hurt your credit report, causing you to have a lower credit score.

How Do You Prepare?

There are certain things that you should do when thinking about obtaining a loan.   Here are 5 tips for making getting a loan easier.

•  Know your Loan Amount

•  Know your Credit Report

•  Shop for the best deal

•  Ask Questions

•  Make sure you have all your documents that you need to apply

Do Your Homework

Knowing your loan amount and knowing that you can afford to pay it back to the lender is one of the first considerations.  Make sure that the loan is comfortable for you to repay because it only takes one or two late payments to hurt your credit.

Know your credit report:  Many times there can be mistakes on your report that you will need to repair before you apply for a loan.  You will need your credit report to be as good as possible, to ensure your loan is approved.

Shop for the best deal:  Make sure that you can qualify with the lenders qualifications and that the terms of the loan are within your budget and abilities.

Ask Questions:  Do not be afraid to ask any questions to ensure that you understand all aspects of the loan and what the lender is charging.  Make sure to ask about the amount of any fees and make sure there are none that are hidden.

Be sure to have all of your documents together for the day that you go and apply.  There are certain guidelines and documents that most lenders have to have to approve the loan.  This will keep you from being disqualified for not having your paperwork.

When applying for the bankloan, make sure that you understand everything that you are signing.  Remember especially when making a purchase on something like a new or almost new car, and you have a good credit score, you might try to talk the interest rate down to where you need it to be.  Be confident and know that your credit score is way above what the lender is requiring.

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