It can be a little nerve wracking to sit in a lenders office and ask for money. But if you are well prepared, you can be confident in your request for a loan. The key is to show the lender how financial stable and educated you are. If the lender knows that you understand your finances and actively manage your finances, he or she knows that you are not a big risk. By showing that you have it all together, you are making the lender think of you as a person who is good with finances. The first step to being good with your finances is to know why you are asking for the loan. Is it a reasonable request? Do you have the means to pay for the loan? Look at your monthly budget and see if you can afford the monthly payment. You will need to be able to tell the lender: 1) why you are seeking a loan, and 2) how you will pay for the loan. Now, you need to gather all of the information you will need to fill out a loan application. Make a list of all of your income and debt. Include in the list all account numbers, addresses, payoff balances and monthly payments. You will need all of this information for your application. It doesn't hurt to know your credit score. You need to check your credit report regularly. If there are mistakes or negative information, you need to take steps to resolve it. If there is true negative information, take the time to write an explaination of each occurance. You can give this to the lender for your file if he or she questions your report. If you know your score, and it is good, then you know that you are eligible for credit the minute you go through the door. This confidence is what you need. If you are applying for joint credit, talk over with your spouse or partner your plan of attack. Go over what you will and will not say in front of the lender. Remember, be professional at all times. This is a business transaction, so you must be serious, but still friendly. The last loan I took out, I walked into the lender's office and within five minutes, I had a loan. I had never done business with the lender before. What did I do? I was well prepared. I had prepared a folder of information that I presented to the lender. I had a list of our assets and liabilities that included all account numbers and monthly payment amounts. Our net worth was highlighted at the bottom of the page. I provided a statement as to the negative information on our credit score and a graph of how our credit scores have risen over the last three years. As I was taking out a loan for cattle, I included a projection of income versus expenses. The lender was impressed, I got my loan and all it took was a little preparation and confidence. |
