If it has been a while since you have applied for a loan, you might find yourself a little worried about whether you will receive an approval. To help you prepare to apply for the loan, you will want to spend a little time reviewing the following tips.
Get A Copy Of Each Of Your Major Credit Reports
It is not enough to simply pull a copy of the report from one of the major credit reporting agencies. This is because each report from the various agencies can have different information on it. Some creditors only report to one or two agencies, while others might report to all of them. You are entitled to one free copy of your credit report from each of the agencies every year. Obtain your copies and carefully read through them. Make sure that there is not anything in them that you need to dispute, such as debts that do not belong to you. This is something that you will want to tend to right away, as it can take a couple of weeks for the disputes to be handled and for your credit score to be changed to reflect the resolved dispute.
Add Up All Of The Cash You Can
Sure, the reason you are going for a loan is because you do not have all of the cash to buy what you need in full. However, many lenders like to see that you have some sort of a down payment, even if it is just a small percentage of the total purchase price. You can use money you earned through your paychecks, money from your savings account, and even money that friends or family have given to you as a gift. If your down payment happens to be a large amount of money and the majority of that was gifted to you, you might need a letter from the person who gave it to you. The lender might want to verify that you do not have to pay that money back, which would impact your debt-to-income ratio that they are considering for the approval of your loan.
As soon as you are ready, you will want to contact some lending companies (such as Liberty Lending Group) so you can start the loan application process. If you are still working with bad credit, you will want to explain that right away. This will allow the loan agent to suggest a type of loan that would be easier to approve you for.
