AIA Chiangmai

Everyday people go to the bank with a loan request written on the back of a napkin and end up getting denied for a loan. Ever wondered why? The obvious reason is they are not qualified for the loan because of a lack of employment, insufficient income, too much debt, poor credit, no previous credit or any combination of these factors. But are these the only reasons? Maybe, maybe not. Keep in mind that bankers are on a salarythey get paid the same amount of money whether they work hard on your deal or not. You see, lenders tend to group people into categories known as A, B or C-borrowers.

A-borrowers tend to be perfect people with perfect credit and high income to debt ratio. B-borrowers tend to be people who have decent income, decent credit and a decent income to debt ratio. C-borrowers, on the other hand, have marginal income and marginal to poor credit ratings. And then there are the projectslenders also tend to group projects into categories known as A, B and C-projects. Here are a few examples of how projects are ranked: A-projects are the kinds of loans the lender likes to doclass-A residential home loans from, say, $100.000.00 and up. B-projects may be a used car loanC-projects could include a debt consolidation loan for a marginal borrower. C-borrowers and projects are often quickly denied. You can see more clearly now how borrowers and projects are basically ranked in the mind of lenders.

Remember; bankers are human and humans tend to take the path of least resistance. If you were a banker, would you rather do a slam-dunk million dollar loan to someone who didn’t need the money or work real hard (day in and day out) trying to fund risky C-projects for marginal borrowers? Most people are not perfect borrowers and you may fall into this category. So what do you do to increase your chances of getting the loan you need? Here’s a few secrets that can help get the loans you need: First, ask yourself a few questions Does your loan request make economic sense? If it doesn’t make sense to you, it probably won’t impress the lender. What can you do to structure the loan to make sense? Secondly, if you were a lender, would you (really) loan yourself the money considering your income, credit and project?

Whether you answer yes or no, you should identify why or why not? Do you have a professional bank package or is your loan request written on the back of a napkin? By having a professional bank package you will get the attention of the lender because most people don’t know how to assemble a bank package. By having a bank package, you can move yourself from a C-borrower to a B-borrower status in the mind of a lender. If you are a B-borrower you can move to A-borrower status. Why? By creating a bank package you have done your homework (and much of the work the lender needs to make a decision) in a format that professionally communicates with the lender. Here’s an outline for a basic bank package for consumer (or business) loan proposals in the order shown below:

1) Cover letter (to the lender, lending institution, brief overview of package and purpose)

2) Loan summary (purpose of loan, use of funds, payback plan, economic justification, etc.)

3) Table of contents

4) Standard bank application for review (get it from the bank)

5) Statement of assets (everything you own that can be used as collateral)

6) Statement of credit debt (all outstanding debts with totals and account numbers)

7) Photo-copies last two (2) years of tax returns

Photo-copies last two (2) years of payroll stubs

9) Supporting documentation (borrower’s resume’, explain past credit problems, documents, etc.)

You want to organize your bank package using an inexpensive 3-ring binder. A bank package does not guarantee financing but it can greatly improve your chances for funding tough deals.

Copyright © 2006
James W. Hart, IV
All Rights reserved

James W. Hart, IV, a consumer advocate and CEO of Smart Books Publishing http://www.smart67.com has been involved in the field of residential and commercial real estate mortgage financing since 1987. Hart, previously licensed to engage in the sale of real estate in the state of Ohio, has been directly involved in the origination of residential and commercial mortgage financing and has worked with residential and commercial mortgage lenders, large commercial mortgage banking firms and life insurance companies for financing. Hart is an honorably discharged veteran of the U.S. Army, graduate of the University of Toledo and graduate of the Cleveland Institute of electronics. He is a member of the National Panel of Consumer Arbitrators and the Council of Better Business Bureaus, Inc. During 1992/93 Mr. Hart appeared on a number of radio and TV stations throughout the U.S. including WJR-AM, WWWE-AM, WHUR-FM, WRC-AM, WLW-AM, WTVN-AM, WSPD-AM, KDKA-AM, KBGS-AM and CNBC-TV and many others

Tags: Banking, bankruptcy, cash, financing, lending, Loans, Money, personal financeBanking, bankruptcy, cash, financing, lending, Loans, Money, personal finance

Share This

Filed under: aiachiangmai03 | No Comments »

The stereotype of the twenty-something single is a small apartment with roommates and lots of those cups of noodles. The young twenty-something couple often is thought to live in a small, affordable rental with hand-me-down furniture.

However, that isn’t the case anymore. An increasing number of consumers are buying their first homes before they reach the age of 30.

It’s never too early to buy a home. There are different responsibilities, but young people are just as equipped to purchase a home as older buyers.

One of the beneifts is that the earlier you purchase a home, the younger you are when you pay off the mortgage. You are building equity in an investment, which is always a good idea. While it isn’t a guaranteed return, most buyers do well given time and wise choices.

It doesn’t matter you age, you should be sure that you are ready to buy a home. Consider the following:

What is your job situation? If you are in a stable position that you plan to remain in, then you should consider putting down roots. You might want to wait if you think you may change jobs or be transferred.

Is your credit in order? Having a good credit score is essential in making a wise purchase. If you know your credit score and it looks great, then you are probably ready. If your score needs work, you should take the time to fix it. It can save you thousands, not only on your mortgage, but you insurance premiums, credit cards and other loans.

Do you know what you are looking for? Look to the future in considering a home for purchase. You will want to live there for at least three years. Think about the expansion of your family and other issues that will come up over the years.

Consider how much you can afford to buy. While your dream home may be out of your price range right now, you can make a wise decision. In fact, with each home my family has bought and sold, we’ve come closer and closer to our dream — partly to the increase in profits.

Look at all of the responsibilities of owning a home. You will now have to make the repairs. You will have to deal with the leaky sinks and sagging gutters. You will have to pay all of the utilities and maintain the property. No more landlords to take care of things for you. Owning a home is a big responsibility.

There are also added costs to consider. Not only do you need to save a sizeable down payment, you will also need closing and moving costs. You will need to have reserves for any necessary repairs. You will have to pay homeowner’s insurance and property taxes on the home. It can all add up, so make sure you remember all the little things when looking at what your budget can afford.

Age really doesn’t matter all that much in the decision to buy a home. It’s an individual decision, based on many factors. If you are ready, then go for it. If you are hesitant, don’t jump too fast. It’s a big step.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Tags: article submission, articles, email, email marketing, email newsletter, ezine, publishing, writers, writingarticle submission, articles, email, email marketing, email newsletter, ezine, publishing, writers, writing

Share This

Filed under: aiachiangmai03 | No Comments »

There are many kinds of financial tools out there to incorporate into your financial portfolio. You might consider stocks or bonds or even your bank account as potential investments. But your financial portfolio also includes such things as insurance and estate planning.

Do you ever stop to consider that your financial portfolio may also include a loan? It’s true. A loan can be a wise financial decision for many people. What follows are a selection of loans that you might consider incorporating into your financial portfolio. Just like any other financial tool a loan is only good in moderation. Just as you don’t fill your financial portfolio with insurance, you wouldn’t stack up loans if they become available.

Before you decide which of the best loans for you consider the two types of loans available. Unsecured loans are loans that do not have any assets to guarantee them while secured loans are loans that are backed up by assets and assure the lending institution they will recoup their losses if you’re unable to pay back the loan. In many cases, a secured loan is the best loan to get.

So what kind of secured loan should you get? You have many choices. If you have debts that are out of control you may consider getting a debt consolidation loan or a bad credit loan to help you pull together all of your outstanding debts and turn them into a single fixed monthly payment at a lower interest rates. You’ll be surprised at the money you save by lowering your rate, lengthening the term to repay, and arranging for a fixed monthly payment rather than receiving many monthly payments in the mail.

Another kind of secured loan you may want to consider is a home improvement loan. A home improvement loan is designed to help you leverage your borrowing to increase your investment in your home. You can do this by getting a home improvement loan and fixing up your house so that when you sell the value of your house will rise. Some people may wonder why you would borrow money only to have to pay it back to improve the value of your house but it is not a zero sum equation. Rather, your house increases in value at a greater rate than the money you spend to improve it! That’s leverage!

Finally, there are other kinds of loans you may want to consider as well. These are just regular loans will help pay for things that you want but that you do not have money for right now. For example, a vacation or an emergency or a fancy sports car! Whatever it is you decide to buy, using a secured loan will help you get it at a reasonable rate and an affordable repayment term.

Mark Lambie is the founder of Loan Source, a website for UK residents seeking secured loans. Visit our website today for a free Secured Loans quote quote and find out how much we can save you.

Tag: LoansLoans

Share This

Filed under: aiachiangmai03 | No Comments »