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Applying for a Secured Loan 101
If youve made the decision to apply for a secured loan, youre likely to have done a bit of homework in regards of current interest rates, traditional fees for preparing the necessary documents, and of course, the fee your lender will charge you for your secured loan. If you have yet to accomplish the above tasks, you should at least begin the process before you begin to contact potential secured lenders. So heres a bit of basic info for you (and if youre already familiar with it, lets just consider it a refresher course, shall we?).
The most common type of secured loan is a mortgage; one of the largest bills that you will ever have in your life. There are a wide variety of fees in all shapes, sizes and colors for you to decipher through, so be sure to pack your x-ray goggles!
First things first, we have the APR its the amount that you will be paying each year for your loan. Also known as the Annual Percentage Rate, it will include the interest rate, fees, and certain other charges calculated on a yearly basis to come up with one complete percentage. Its usually a bit higher than the interest rate that youre quoted, as it includes the other fees.
Be sure that you know the terms for fees as many of them can be hidden or covered up as something else. Points are one of the more popular fees, and can range in purpose to get you a lower interest rate to an honest loan officer telling you thats how hell fill his paypacket. When in doubt, ask questions! If youre not happy with the answers you received, ask someone else. Ask all the way up to the president of the company, as this is your money were talking about here. And dont sign anything that youre not 100% sure about.
And last but not least, be sure to shop around- dont put all of your eggs into one proverbial basket, so to speak. There are, unfortunately quite a few bad loan originators (often referred to in the industry as predators) in the secured loan industry that are completing the old Bait and Switch routine on you- promising the moon and stars to you, their special client, but all the while they have no such program waiting for you (and you are now in a difficult position: either choose the horrid loan program that you got switched into, or no loan at all). By shopping around, and informing the competing lenders that they are not alone, you are setting yourself up for an ideal, winning secured loan situation.
When the application process commences, its very important to remember that you can change your mind at any time without penalty or fine. Sometimes our gut instinct tells us something that we just cant avoid, and its often best to listen to our gut
Help your business with Commercial Property Loan
Want to start a business, but have short fall of funds? If you have a property in your name , then you don’t need to worry, because many banks are eager to give you a commercial property loan against your property. Only thing you have to do is to find the perfect lender for your business. If you cultivate the present scenario of the loan market, you will find that every borrower is striving for a loan that will come with lower interest rates and bigger loan amounts. In this process, the borrower can use the savings into other business purposes.
An commercial property loan can be classified into three categories:
Secured Commercial Loans: A secured commercial property loan is the one which uses the property as a security (protection against default) for the loan. Here , the legal charge for the property is taken back by the lender. If the property is already in a commercial mortgage, then it will be second to the first charge of the lender who had granted the commercial mortgage. As the secured commercial property loan has lower bad debt risk, it carries a much lower interest rate than any other business finance.
Redevelopment Finance: If you want to renovate your commercial property or increase the property valuation by making some changes to your property, then you have to take a commercial property loan for redevelopment your assets. For this, you have to ensure your money-lender whether the project is viable or not. It is found that in many cases, the property is used as the security of the loan.
Bridging Finance: Bridging finance is another type of commercial property loan. In this case, if the market interest rate is higher than your expectation, but you need an urgent loan, you could ask for a shorter amount quickly, besides arranging for the high amount of loan.
But if your project is commercially very sound, then you can ask for an finance secured loan. In this case, the interest rate is much lower than the other type of loans. A Finance secured loan a new business venture, buying a car, to repair your assets or even going for a vacation. This type of loan can be used to consolidate the borrower’s earlier debts. For all these facilities, finance secured loan is also termed as a multipurpose loan.