Applying for a loan can be stressful. Here are our top 5 tips to help with the process!
1) Establish and set your goals for borrowing.
· How much money do I need, what is my goal for repayment?
· How much do I have to put into the project or the purchase?
2) Prepare and gather information that will reflect your current financial position and aid your loan officer in completing your balance sheet.
· Review your assets, your debt balances as well as your payment schedules.
· Do you have your down-payment; do you have cash reserves on hand to sustain you for several months?
· Is your Credit Report in order, free of outstanding judgments or collections, have all payments been made in timely manner?
3) Gather and bring verification documents, tax returns, paystubs, bank statements, specific information relating to your loan request.
· This includes: house plans, contractors estimates, equipment cost, improvement estimates, real estate identification, any helpful information your lender may need for your individual request.
4) Shop for a lender that is aligned with your borrowing needs and one that you feel comfortable working with.
· Does your lender know and understand your borrowing needs?
· Does your lender understand your operation?
· Will they be a strong partner to help you achieve your goals?
5) Access your current Life Insurance status.
· How much coverage do I have now, will that coverage be sufficient for any additional debt?
· With the addition of new debt, it’s a key time to review and confirm that your family and assets would be protected.
Being prepared makes for a smooth process for both the borrower and the lender! Let us help, we are here for YOU!
To read more about Carolina Farm Credit, our members and the ag industry, check out issues of our Leader magazine—you can read them online.
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