If you are in the market for a loan, whether you are a student, homeowner or potential vehicle owner, it is of the utmost importance to ask the right questions of your future lender. The answers to these inquiries will help you figure out the details of your loan’s interest rate, repayment plan and more. By asking the right questions about your financial situation and the terms of your loan upfront, you will save yourself confusion and frustration down the road when it comes time to pay it off. Here are some questions to pose to your loan officer.
- What is my credit score?
- What is the application fee and what supporting documents do I need to apply for the loan?
- Do I need to have a cosigner on this loan?
- What is my interest rate and how is my credit score determining my interest rate? Is the interest rate fixed or is it subject to change?
- Is this a secured loan or not?
- What is the repayment period and what are the other terms of the repayment process?
- Do you offer any assistance or referral programs if I default on the loan?
- What limitations are there on the loan? Must I use the funding specifically for a vehicle, school tuition, a mortgage payment etc…?
- Is there any pre-payment penalty on the loan?
These questions will help you to determine if the particular loan that you are applying for is right for you or not. Remember that many loans will help you to build up your credit, so even if you start out with credit that is less than stellar, your credit score is likely to slowly rise as you make regular, on-time payments on the balance of your loan. In this way, loans can be a helpful way to increase your monetary health, as long as their terms are a good fit for you and your finances. Contact American Loans to speak with a lender to help answer these questions and any others you might have when looking for a loan.