4 Things You Need To Know About Applying For A Bank Loan


If you need a bank loan, you need to know what to expect before you go into the bank. Here are five things you need to know about getting a loan from a bank.

#1 Don't Expect Things To Go Fast

The first thing you need to realize is that the bank is going approve the loan on their time frame, not on your time frame. Your loan officer will not be able to push through your loan just because you want the money right away. Your loan officer has to follow specific protocol according to state and federal laws, as well as bank protocol. 

Although there are some types of loans that you can get pre-approved for, it will still take some time for all the details to get hammered and and for you to actually get the loan. 

#2 Expect To Explain Why You Need The Cash

When you are applying for a personal loan, the bank is going to want to know why you want the cash and what you intend to spend the money on. For example, if you are using the loan to consolidate your debt, your bank will want to know this. 

Why you need the cash is a factor that your bank is going to take into consideration as they decide whether or not they will fulfill their loan.  

#3 Know Your Credit History

When you go in and talk with your loan officer, they are going to review your credit report with you. Get a copy of your credit report before you apply for a loan and try to fix any errors on your reports. Make sure that it is accurate. 

If there are any missing payments or closed accounts on your report, be prepared to explain them. Realize that your credit report may limit the size and terms of your loan.

#4 Prepare Your Documents

You are also going to need to get all your financial documents ready before you go in. You will need to provide proof of your income as well as your assets. You may also need to provide explanations and evidence of your debts as well. Call ahead of time and ask the bank what type of documentation you will need to apply for a loan, and take your time gathering these documents. 

If you follow the four steps above, you will put yourself in a better position to get your loan approved. Be prepared with your financial information, and be prepared for the process to take a while. Contact a local bank, like Weyco Community Credit Union, to get started.


15 February 2016

Borrowing What You Need

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