We're all entitled to the opportunities and benefits of home ownership. But because most of us aren't loaded with cash, we must find banks and lenders to assist us with finance. No matter what your credit history is, or what your circumstances are, the internet has now made this process a billion times easier. This article will outline a 5 point plan, to assist you in your pursuit of financing online:
Step 1: Don’t be afraid to go shopping.
Discussing personal mistakes in life can paralyze us with fear, namely, getting into the “bad credit” issues.
The good news is that for the most part, getting into this “stuff’ is completely unnecessary in the preliminary phase of shopping for a loan, beyond the basic information provided in an online short-form.
In other words, you don’t really have to talk about the nitty-gritty details, until after a loan offer has been presented to you. We’ll get into that later…
But since we’re on the subject, if you are a consumer with credit history issues, let me briefly take this opportunity to state the obvious:
- You’re no different then anyone else. We all live imperfect lives.
- Credit problems do not make you a bad person, they are simply reference points.
- There are loan products designed for you.
- There are lending institutions that are interested in earning your business.
- There is nothing wrong with you, or your credit, or your situation. You are who you are, and that’s just fine!
You need to first get into the right frame of mind. Don’t be afraid to ask questions, and don’t be intimidated by your credit history. Be honest. Give truthful information. But don’t feel shame or regret for your past or present personal circumstance. They make you who you are, and that earns you respect! So with that said, put on your confidence, and let’s GO!
Step 2: What’s the going rate?
Information is free, so why not be informed? Many resources are available on the internet to get current interest rates, including a rate-watch at our website:
So to start with, take a look at two pieces of information:
- Current Interest Rate, 30 year fixed
- 6 month trend graph
A little exercise: Do you see the current rate? What about the 6 month graph. Are rates going up, down, or staying about the same? Is the current rate higher than it was 6 months ago? Lower then 6 months ago?
Now don’t feel the need to analyze this information too much. Relax. For now, just look at it, and perhaps, check it several times a week to stay informed.
If you do this, you’re already 10 steps ahead of the game!
You are now an informed shopper. When an offer is presented to you in the near future, you’ll be able to ascertain how good an offer it actually is by knowing how it compares to the “going rate”. (sidenote: Don’t forget to check terms, fees aka: “points”, and conditions relating to your loan offer. Often times you will see higher points or less favorable terms, in exchange for a lower rate.)
In addition, you’ll be able to assess if you think rates are declining or on the rise, which may help you to decide if “NOW” is the right time.
Step 3 – Obtain several offers, and SHOP RATE!
When you buy a car, do you seek out the best deal? When you go grocery shopping, do you consider which store offers the best prices?
Shopping for a mortgage should not be seen any differently, and the best way to do this is to obtain several preliminary loan offers online.
- Preliminary loan offers are simple, painless, and easy to get.
- They contain the terms, rates, and pertinent information you need to assess the lenders.
- They will take all the guesswork out of where you stand.
Get 3 or 4 offers, and compare them. How do they compete against each-other? How do they compare to the going interest rates (see step 2 above).
Our website has compiled an index of hundreds of lenders and institutions that provide these preliminary services. This information is free, and available for you to peruse at your leisure.
Many of these companies’ conduct searches of thousands of lenders, a lot of them in your local area, and they provide you with 4 loan offers almost instantly.
Take advantage of this! These are no obligation services, and for the most part, the online application forms are simple, fast, and easy. They literally can take no more then a couple minutes to complete.
In addition, you don’t need to be burdened with going through your credit history at this phase. Completing the simple form is all it takes. If you qualify, and a lender is located that wants to do business with you, then you’ll go to the next step which is to discuss this possible opportunity over the phone.
But isn’t it nice to know that by that point, the lender has basically, already approved your loan?
Step 4: A couple things to keep in mind
- Lenders should never ask you for personal or private information during this preliminary phase. Of course they’ll need to know some basic information about you and your situation, but never give out information you feel uncomfortable disclosing (such as your social security number), and look for a “privacy policy” on their website.
- Remember that these are “preliminary” loan offers, which means no immediate commitment on your part. You complete a simple, on-line short-form, and then you get several offers in return. The lenders that made the offers may wish to talk with you over the phone, but that’s where the preliminary process ends. The ball is in your court to choose a product that meets your needs, or to keep shopping.
- These services are offered for “FREE” and you should not be asked for any service charges at any time, ever!
Step 5: Understanding your Options
Let’s put this all together.
If you’ve followed this simple plan, you will discover that there are indeed consumer loan products tailor made to meet everyone’s needs. Remember to examine the terms and rates, obtain several loan offers, and then talk to the lenders over the phone. Find out who they are, and whether or not you’d like to do business with them. Throughout this process, stay informed by checking interest rates.
We’ve enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, but never turn your back on your own common sense.
Sincerely, Webmaster Tom Levine
Copyright 2004, by LoanResources.Net
This article may be freely distributed so long as the copyright, author’s information and an active link (where possible) are included.
About The Author
Tom Levine is the webmaster of http://loanresources.net, and he can be reached at info@loanresources.net
For more information about mortgages, debt consolidation, credit repair, and all other forms of consumer loan, credit, and debt products, please visit our website.
