Everyday people go to the bank with a loan application on the back of a napkin and write at the end always be denied for a loan. Ever wondered why? The obvious reason is that they are not on the loan due to a lack of employment, inadequate income, too much debt, bad credit, no credit qualifying prior or a combination thereof. But these are the only reasons? Maybe, maybe not. Note that banks are on a salary ... they receive the same amount ofMoney if they do not work hard on your transaction. You see, lenders tend to group people into categories such as A, B or C, known borrowers.
A borrower is usually perfect people with perfect credit and high income to debt ratio. B-borrowers are usually people who are decent income, decent credit and income to debt ratio have. C-borrowers have, on the other hand, marginal income and marginal to poor credit ratings. And then there are the projects ... Lenders also tend to group projects inCategories known as A, B and C projects. Here are a few examples of how projects are ranked: A projects are the types of loans from the lenders like to do ... Class-A residence loan of, say, and up to $ 100.000.00. B projects to a used car loan ... C-projects could include a debt consolidation loan to marginal borrowers. Borrowers and C-projects are often quickly denied. You will now see more precisely how borrowers and projects are mainly in the minds of spaceLenders.
Remember, bankers are people and people tend to follow the path of least resistance. If you're a banker, would you rather a slam dunk-million-dollar loan to do to someone who did not need the money or work very hard (every day) trying to fund risky projects for C-marginal borrowers? Most people are not perfect borrower and you can fall into this category. So what do you do to your chances, you need to improve the loan? Here are a few secrets that areHelp find the loan you need: First, ask yourself a few questions ... Does your loan application make economic sense? If it does not make sense to you, it is not likely to impress the lender. What you can do to restructure the loan make sense? Secondly, if you are a lender you (really a loan) to himself the money, taking into account your income, credit and project?
Whether you answer Yes or No, you should determine why or why not? Do you have a professional banking package, orYour loan application is written on the back of a napkin? Through a professional banking package, you will find the attention of the lenders get, because most people do not know how a bank to install package. By a bank package, you may choose from a C-move-a B borrower-debtor status in the mind of a lender. If you are a B borrower, you can move to A-debtor status. Why? By establishing a banking package that you have done your homework (and much of the work, the creditor must make a decision) to takein a format that is professionally communicates with the lender. Here is a draft of a basic banking package to consumers (or business) loan proposals in the order shown below:
1) A letter (to the lender, bank, short 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 may (request for review by the Bank)
5)Statement of assets (everything you own can be used as collateral)
6) Statement of Debt (with all of the outstanding debt amounts and account numbers)
7) Photo-copies of last two (2) years of tax returns
8) Photo-copies of last two (2) years of payroll stubs
9) The documents (CV borrower "to explain past credit problems, documents, etc.)
You want to organize your financial package by using a cheap 3-ring binder. A bank is not liable for packageFinancing, but it can be very hard to improve your chances for financing deals.
Copyright © 2006 James W. Hart, IV All Rights Reserved
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