FREQUENTLY ASKED QUESTIONS:
Understandably, there are a bunch of questions that any loan seeker may have. So we’ve decided to answer them here. If you have any additional questions, reach out to our team! We have a team of experts that can answer any of your queries.
What is a loan consultant?
Loan consultants are an essential part of the loan acquisition process. Through loan consulting services, loan seekers can better understand their loan eligibility and the necessary steps they need to take to acquire a loan. The loan acquisition process involves several key steps.
A loan consultant helps connect clients to the appropriate lending agency and makes sure that they can pay it back. After reviewing your financial documents, cash flow, credit score and credit history, loan consultants can also help you lock in a manageable rate.
How long does it take to be approved for a loan?
Approval time can vary widely. If you are prepared with all the correct financial documents and qualified for the loan you are applying for, you can be approved in just a few hours. However, if we require additional information, approval may take a week or so. Your loan consultant should help you with this process.
For quicker access to funds, you can apply for an online loan. With many online lenders, you can get your funds in several business days. Just make sure to have your application prepared first, including your credit score, credit history, business plan, financial statements, and collateral (if needed).
What types of loans are out there?
Loans can be utilized to help pay for your home, pay for your car, pay for your university degree, and pay for your business startup costs. There are several kinds of loans such as apartment loans, business loans, cash advances, loans to consolidate debt, commercial real estate loans, and so forth.
There are also working capital loans that can help you with day-to-day operational costs. Be sure to calculate working capital for businesses before you apply!
There are short term loans, long term loans, and line of credit loans. Each kind of loan requires different interest rates that can fluctuate according to what the Federal Reserve sets. For example, when it comes to buying a home you may encounter a variety of interest rates. HELOC rates (home equity line of credit rates) tend to be lower than rates for home equity loans. But, if you have a lower credit score, you will likely experience a higher interest rate.
There are pros and cons to each type of financing so make sure you do your research first. Understanding the types of loans and rates available is important when applying for a loan and securing manageable rates.
What kind of rates are out there for business loans?
Like getting a mortgage for your home, you can acquire a mortgage for your business. However, business loan rates tend to be higher than home equity loan rates. But, if you qualify for a business loan or business line of credit, the terms of that loan are generally superior to a personal loan. There are also many business credit cards that can offer a fixed interest rate and other favorable terms.
For instance, business loans have lower interest rates than personal loans and can be repaid over a longer period of time. Moreover, business loan rates typically allow you to receive more capital than personal loans.
What is an SBA Loan?
The U.S Small Business Association is a government agency that deals with the funding and financing of small businesses throughout the U.S. The SBA issues loans of any size, including microloans. These microloans can fund your business for up to $50,000. The Small Business Administration can help connect you to lenders that will assist you depending on your situation. For instance, the SBA can help provide capital to rebuild your business if it has been affected by the covid pandemic.
What is a Disaster Assistance Loan?
Due to the Covid-19 pandemic, the U.S government Small Business Association issued SBA loans to assist with pandemic related closures and other pandemic related disturbances. These loans are periodically available.
You can check back with the SBA when more funding is available, but generally, the funding runs out quickly. The disaster loans offer a reduced interest rate and a delay before you need to start your repayment. The SBA can provide up to $2 Million in disaster assistance.
How do I get good mortgage rates?
In general, securing good mortgage interest rates and increasing your credit limit comes down to having a good credit score and good credit history. However, there are other financial details that a loan officer may look at such as a low debt-to-income ratio. Loan officers may also look to see if you have tappable equity on your home.
But, regardless of your financial standing, a loan officer or loan counselor will work with you to help you understand what you need and what you can do to acquire a loan. Be sure to use our loan calculator to help you estimate your monthly mortgage payments, principal and interest. Monthly payments and interest largely depend on the term of your loan (30 years, 25 years, 15 years). A longer term loan means better rates.
It is recommended to “shop for loans” and apply for various loans through different lenders to see if you can find a better loan. You can also work on your credit score before you apply. The better your credit score, the more affordable your loan may be.
Make sure that you can afford your desired loan. When you agree to a loan, you sign a personal guarantee, pledging to repay the loan. If you do not repay within the repayment period, your assets can be seized. Loans can be paid back in installments, or in a lump sum.
Remember in addition to the annual fee you will pay, some lenders will charge an origination fee.
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