Loan applications can be tricky. Without enough money to hire an attorney, you may end up losing everything. Here is the best checklist to work with for smooth loaning term.
The Loan Arranger
- Who is arranging this loan? Is it a mortgage broker?
- Does a plan exist to sell this loan to any person?
- Will all the payments be made to the business you represent?
- Do you have any court proceedings pending against you?
- Are there any administrative issues pending on the company you represent?
Payments
- Does a charge fee exist for arranging your loan?
- Does a ‘loan origination’ fee exist?
- Does any charge fee come in for preparing documents/ underwriting?
- Are there extra charges for credit reports?
- Is the broker’s fee included?
Terms Of The Loan
- Is there any security required?
- Do you have a lease, a land contract, or a need to be signed?
- Is there a requirement for a co-signer before the loan is approved?
- Is the interest rate more than 3 points above the prime rate on the loan?
- Is there ‘line of credit’ or a similar unsecured loan?
- Is the end payment of this loan too huge?
- Will the monthly payments be enough to lower outstanding balance?
- Is there any penalty if you pay off the loan early?
- Is there a mandatory arbitration clause in the terms of the loan?
- Can this loan turn other unsecured debts into secured debts?
Tips
- Check any requirements to give another person power of attorney upon signing.
- Check for payments to any creditors from the proceeds of the loan.
- Check if any income other than disclosed can also be considered for eligibility purposes.
- Don’t sign any forms with some blanks not filled in.
- Do not sign forms that haven’t been well-explained to you.
- Do not sign forms that you haven’t read.
- Ask a lawyer to accompany you before you sign
Hopefully, our checklist has saved you this pain striking process. Share it to help others secure their loans upon understanding every aspect.