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 »

It can often be difficult to obtain a loan from banks, which is why owner financing is becoming very popular among home and real estate buyers. Among the many perks of owner financing, the seller often accepts a low down payment whereas banks often charge 20% or more. In addition, many owner financed properties can be obtained without a credit check. This is especially beneficial for anyone who has a few blemishes on his/her credit report, which may cause banks to charge a higher than normal interest rates. An individual, or real estate developer, who is in the business of providing owner financing will likely extend financing to anyone who agrees to keep the payments current.

In recent years, the internet has become a hub for owner financing properties while also providing plenty of lending opportunities for anyone who wishes to apply for a loan from banks. Currently, a lot of the major internet auction sites have a category that is specifically designed for buying and selling real estate. These categories are more often used for owner financing options related to land purchases, but buyers will find a few homes sprinkled in now and then. From a mountainous retreat to a tropical island paradise, there is owner financing for land in these and other areas.

Customers who wish to apply for loans from banks will find a variety of resources online, including eloan.com and lendingtree.com. These sites offer a customer the ability to have banks competing for their business. According to these sites, offers may begin arriving within hours. Not everyone will be approved, however, as there are a number of deciding factors that banks look at when deciding to extend credit. Among them, the customers credit history, debt to income ratio, ability to repay the loan and the presence of regular income.

Loans that are obtained through banks will require documentation, which may include previous 2-3 years of tax returns, current pay stubs and/or proof of employment. If they own land, individuals who are interested in buying or building a home will find that they have more success with banks. The reason is because the land will become partial collateral for the loan and, if the buyer defaults, banks will foreclose on both the house and the land. In addition, many land owners do not have to come up with the money for a down payment as the equity in their land will serve as the down payment.

Find more about catastrophic health insurance, motorcycle insurance Canada, pet insurance Canada and many other insurance resources.

Tags: bank, Banks, Credit, Finance, financing, insurance, loan, Loansbank, Banks, Credit, Finance, financing, insurance, loan, Loans

Share This

Filed under: www.aiachiangmai.com 0102 | No Comments »

One of life’s joys is buying a new car. The excitement of looking through those glossy brochures, choosing the brand, model, colour, plus the features is incredible. Ask most men and I’m sure they’ll tell you it’s one of the things they enjoy most in the world. And these days, with women reported to be involved in over 80% of all new car purchases, women are getting hooked fast on the pleasure of buying a new car.

However, if there is one thing that can detract from the enjoyment of buying a new car, it is the finances of the whole deal. This is not just speaking about the price of the new car, although this can be considerable. There is also the issue of all the hidden, and not so hidden extras that you have to pay for. For example, before you finalise the price of the car, you have to find out what features come as standard, and if you want to have any additional features, be they for safety, power, style or any other reason, you have to make sure that you calculate the extra cost of them into the price of the car.

Then, added to this is the delivery cost if there is one. Plus any other hidden dealer fees for whatever reason. Then you have to deal with financing charges. You may be one of the lucky people who can pay outright for their car, but most people will be using some style of financial product to cover the purchase price of the car. Either they’ll be leasing it from the dealer, or they’ll be relying on the dealer’s financing offers, or maybe you will have arranged a separate loan from your bank or other lender. Frequently there will be associated costs with the financing package and they should not be overlooked when calculating the cost of the car.

Add to this the cost of road tax. Road tax is calculated based on the size of the engine of the car. Then you will also need insurance. You should make sure you shop around and get the best possible price for your car insurance. You can choose between different levels of coverage depending on whether you want your own car to be covered or just third parties.

By the time you have added all of these extra expenses on to the purchase price of the vehicle you will be closer to knowing the true cost of the car. Make sure you can afford this figure and your car buying experience will be far more enjoyable.

Joseph Kenny writes for the loan information sites http://www.selectloans.co.uk/ and also http://www.ukpersonalloanstore.co.uk. Select Loans have information and links to certain suppliers in the car loans section of the site.

Tags: Car loan, cost, Credit, fees, financing, insurance, Loans, purchases, taxCar loan, cost, Credit, fees, financing, insurance, Loans, purchases, tax

Share This

Filed under: www.aiachiangmai.com 0102 | No Comments »