How to Apply for a Loan

By Maria O'Brien

Before you can get the money for your new car, house or purchases, you'll need to apply for a loan if you aren't paying with cash. You'll need some basic information, as well as financial documents and identification. You can apply for a loan at a bank or credit union or online. Your loan may be a personal loan or a secured loan based on your home equity or vehicle.

Download your credit report and learn your credit score. Check for inaccuracies in your report, which you'll need to have fixed. Knowing your credit score will give you an idea of the rates for which you'll qualify. In fact, some lenders even post what rates each credit score range will likely receive.

Gather your personal information, including contact information, Social Security number, monthly and yearly income totals, proof of income, previous two years' tax returns and list of assets.

Find the loan application or applications pertaining to your desired loan, whether it's a home equity loan, personal loan, or small business loan. Your local bank as well as online lenders have applications for a variety of loan products.

Fill in your loan application, or preliminary information in the case of an online loan search, being completely honest and accurate in your answers. Remember that precise information is important when you apply for a loan.

Review your loan offers and compare interest rates. Choose the loan with the best repayment terms, paying special attention to the type of loan. A fixed interest rate is generally best, because you'll know what your monthly payments will be and not risk an increase.

Verify that all of the information on the loan papers, from your personal data to the loan amount and terms, are correct. Sign and accept the loan. You'll usually receive a check if it's a personal loan, or the financed vehicle or other item if it's a loan with collateral.

Research current interest rates so you'll know if your loan offers are good.

Don't miss any payments on your loan or you may jeopardize the loan and your credit.

http://www.lenderva.com