1. Calculate what you can afford
Remember to include rates, points and fees.
2.If purchasing a home include insurance and taxes.
3. Get your credit report
4. Put your financial papers in order
These would include:
Bank statements
Mortgage papers
Insurance papers
Car loan papers
Tax ID
Business expense receipts
Taxes overdue
Other loan documentation
Credit reports
Other out-standing debt.
FINDING OUT HOW MUCH YOU CAN TO BORROW
4. Estimate your monthly/annual income
5. subtract income tax payments due
6. Calculate your monthly expenses and subtract this from the above
8. List any outstanding debt and subtract this from the above figure
7. Now figure out your net worth by calculating all assets.
Include investments, auto, home, CD's bonds stock estates etc.
Line 7 is your true net worth.
You would do best to borrow no more than 25% of your net worth.
Line 6 is your financing income. Income you can use for paying on a business loan and as
well as other expenses. It's best to use no more than 50% of this and put the rest aside
for investment and savings.
Now adjust the amount you wish to borrow based on true net worth and include any
outstanding debt you wish to satisfy.
You are now better prepared to ascertain what is needed and what you can afford to
request.
FINDING BARGAINS ONLINE
Thanks to the Internet you can become a part of a highly competitive marketplace of
lenders competing for your business in a structured bidding system. Consumers shopping for
the lowest rates and attractive loan programs simply complete one application that is
submitted securely to several lenders at one time. Lending networks offer low rate
shopping in a highly competitive bid-for-your-business marketplace.
Lenders who win the bid tend to value their potential customer more and are more often
willing to offer you a much better product with greater incentives and lower rates than
their competitor. You have more options in choosing the loan that's best for you.
Online Loan Shopping Tips:
1. Don't accept the first or second loan offer.
2. Let lenders know if someone gave you a better offer and let them WIN YOU OVER.
3. Next, check rate trends and calculate loan rates and payments according to the lowest
rates offered. This can be easily done online at top lending marketplaces online. Mortgage
Loan Search at www.mortgageloansearch.cc
reviews lending marketplaces offering tools, tips and guides to make the loan shopping
process possible. Firmly hold to the lowest rates within your reach.
4. Don't give the impression that you absolutely must have this loan now. Your greatest
bargaining position is not desperately needing the product being offered.
5. Ask about fees up front. Use the amortization calculator to figure in fees, insurance
and tax payments.
FINDING A GOOD LENDER
It is always prudent to seek recommendations from credible sources regarding the lenders
who make you an offer online. Seek individuals who have experienced the loan process and
closing with the lender, broker and loan officers in question. Among the questions you
could ask are:
1. Did the loan process go smoothly?
2. Were all your questions answered?
3. Was the process explained to you?
4. Were all fees discussed candidly?
5. Were there any undisclosed fees charged at closing?
6. Was every effort put forth to give you a deal to your satisfaction?
7. Were you pressured to sign anything against your better judgment?
8. Were all papers signed before funds were issued?
9. Was the settlement package complete?
10. Was there ample time to review all documents before signing?
11. Did you receive funds in a timely manner?
12. Were certificates of satisfaction and deeds of trust properly registered at the
courthouse and filed? Were you given originals upon satisfaction of payment? If you get a
positive response regarding the above and you are satisfied with rates and fees offered
you’re likely to come out the winner.
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