Online Loans

Online Loans

With several loans under our belts, commercial property loans, residential loans, resort loans, structuring loans, as well as real estate sales and financing experience, we decided to use our expertise and provide you with some tips from experience, as well as multiple sources to shop around.  We have several suggestions for you before you contact or fill out the different online loan applications we have provided you through our advertising sponsors.

Online Loan – Important, Shop around before you apply for your online loan!  We encourage you to look around!  Shop for your online loan, gather your information.  Each application is an inquiry and reduces your credit score, so be picky!  It will cut your credit score number with each loan application you submit. With your online loan shopping there are several things you want to gather for your information.  Here is a bullet list of things you will want to know from the online loan source.

Online Loan – Loans Annual Interest Rate.  What is the annual interest rate?  This is the interest you are being charged, based on an annual amount.  The interest is refigured daily, based on that days balance, so the interest is less on the smaller amount that you will pay the next month.

Online Loan – Loan Amorization or Loan Term.  What is the amorization or term of the loan, meaning 15 years, 20 years, 30 years, or your preference.

Online Loan – Fixed Loan Rates or the Cheaper Variable Loan Rates.  Is the online loan rates fixed or variable?  Fixed loan rates are the best, to protect you from big surprises down the road.  Most variable loan rates over the years have been “a good deal for the bank”, even if the loan is less in payments in the beginning.  It allows the lender to “pick your loan rate” down the road without your imput!  Then you will be looking to get a refinancing mortgage loan!

Online Loan – Loan Prepayment Penalty.  Is there any prepayment penalty?  This is a penalty for paying early.  We never know when we will need to have a life change.  We recommend no prepayment penalty.

Online Loan – Down Payment.  What is the loan down payment?  Ten percent is easy to figure in your head, 70,000 is 7,000 down, double that for 20 percent, half it for 5 percent.  That makes it easy to do your loan down payment it in your head.  That is always important.  Sometimes selling that vintage car for your online loan is not a bad idea, if you have rent expense anyway.

Loan Applications generate an inquiry on your credit report, so shop before you apply!

These are the primary needs for your inital information.  The most important thing, shop very hard before you actually apply.  The online loan source, or any loan source for that matter, is not going to tell you that you are going to generate an inquiry on your credit report.  When you apply for a loan, it takes a few points off your credit score, so you want to keep your actual loan application inquiries down to a minimum.  This is very important! 

Sourcing tip, click on the “Tags” at the top of each topic post for a more direct link to your loan sources.

Pick the lender that fits!

Look through the information and make sure that the loan fits your needs.  Keywords that lead you to fixed loan rates, mortgage loans, home loans, car loans, no loan prepayment penalty, all are a part of the above check list.

Online Loan – Be ready!  First and foremost, have your taxes done.  The first thing mortgage loans ask for is your last two years of taxes.  It is also common to be asked for recent check stubs from work.

Online Loan – Income to loan ratio.  Many lenders will take a percentage of your income and determine that this is a good amount to lend based on what your earnings are.  28 percent of income for loan payment is a common number, although might be adjusted based on your other expenses. 

Online Loan – Loan To Value Ratio.  Loan to value ratio is simple.  If you are borrowing 80,000 dollars on a 100,000 home, you have an 80 percent loan to value ratio.

Online Loan – Outstanding Loans.  Outstanding loans that you also owe will be a factor.  This is many times served in a Mortgage Refinance Loan if any equity is built up, so that you can show a loan to value of the property to be ok, so that you can get rid of the other loans you have including improvement loans, credit card loans, car loans, etceteras.

We will write more as we can, but for now, gather information thoroughly and be ready when you apply, and you can make this a much faster loan process experience.  Good Luck!

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