When you find the need to secure a loan for new furniture, car, consolidation, or any number of reasons, you want to be sure you obtain the best loan rate that is available.
It may take some extra time to do that, but it will save you a great deal of money over the term of the loan.
Don't assume that because you have done business with your bank or credit union for many years they are going to offer you the best rate.
Conducting the research There are many different ways to research the best loan rate.
Of course, the most common way is to call some local lenders and ask what their loan rates are for the type of loan you seek.
Of course, you will have to provide some background information in order to obtain an accurate rate quote.
Even then, the lender can only give an educated guess because until he sees your financial and credit information in front of him, he is unable to accurately know what kind of a risk you are as a borrower, the determining factor in all interest rates.
Another way to obtain information about the best loan rate is to conduct research on the Internet.
For many people today, this is the quickest way to research any kind of information because you can do it any time of day or night, and you can research many lenders at the same time.
Narrowing the search After you have received enough quotes to narrow your search to between three and five lenders, contact those for information that is more detailed.
If they are local lenders, you can call to set up an appointment to sit down with the lending officer with some facts and figures that they can see in front of them.
Everything but your credit report should be available for this interview; however, if you have a copy of your credit report, you can bring it with you.
The credit report is part of the actual loan process, not the elimination process.
If the lender is out of state, you can conduct further research by telephone, email, or fax.
The more information you provide at this phase of the process, the more accurate of a rate quote you will obtain, and your goal is to obtain the best loan rate possible.
Making the final decision After you have finished the research, you are ready to make your decision.
As you do, be careful not to base the decision on the lowest rate, but rather on the best loan rate overall, combining interest rate, term of the loan, and any additional charges that are assigned to the loan.
Make your final decision based on a combination of all of the information and not just one item alone.
Remember, a lower interest rate but longer term may yield the same total payments as a higher rate with a shorter term, so you have to weigh those factors into your decision.
In addition, look at any additional charges the lender may place on a lower interest rate loan.
Be certain to weigh all of these factors before you can make an informed decision.
It may take some extra time to do that, but it will save you a great deal of money over the term of the loan.
Don't assume that because you have done business with your bank or credit union for many years they are going to offer you the best rate.
Conducting the research There are many different ways to research the best loan rate.
Of course, the most common way is to call some local lenders and ask what their loan rates are for the type of loan you seek.
Of course, you will have to provide some background information in order to obtain an accurate rate quote.
Even then, the lender can only give an educated guess because until he sees your financial and credit information in front of him, he is unable to accurately know what kind of a risk you are as a borrower, the determining factor in all interest rates.
Another way to obtain information about the best loan rate is to conduct research on the Internet.
For many people today, this is the quickest way to research any kind of information because you can do it any time of day or night, and you can research many lenders at the same time.
Narrowing the search After you have received enough quotes to narrow your search to between three and five lenders, contact those for information that is more detailed.
If they are local lenders, you can call to set up an appointment to sit down with the lending officer with some facts and figures that they can see in front of them.
Everything but your credit report should be available for this interview; however, if you have a copy of your credit report, you can bring it with you.
The credit report is part of the actual loan process, not the elimination process.
If the lender is out of state, you can conduct further research by telephone, email, or fax.
The more information you provide at this phase of the process, the more accurate of a rate quote you will obtain, and your goal is to obtain the best loan rate possible.
Making the final decision After you have finished the research, you are ready to make your decision.
As you do, be careful not to base the decision on the lowest rate, but rather on the best loan rate overall, combining interest rate, term of the loan, and any additional charges that are assigned to the loan.
Make your final decision based on a combination of all of the information and not just one item alone.
Remember, a lower interest rate but longer term may yield the same total payments as a higher rate with a shorter term, so you have to weigh those factors into your decision.
In addition, look at any additional charges the lender may place on a lower interest rate loan.
Be certain to weigh all of these factors before you can make an informed decision.
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