How to Protect Yourself When Getting a Loan

There are many ways to protect yourself if you are seeking a commercial loan or a refinance loan.

First, do some research online about both a commercial loan and a refinance loan. Find out your mortgage options, and also check and copy your credit report so you will be more prepared to negotiate for your commercial or refinance loans.

You should interview several lending company’s and keep a journal of what terms they are offering for a new commercial loan or a refinance loan.

Always price the other property in the area, the price should be comparable. Hire a licensed qualified home inspector, and before you sign the contract on either a commercial or refinance loan, decide who will be responsible for any repairs, the buyer, or the seller.

Never lie on the loan application for any reason. Lying on a commercial or a refinance loan application is fraud and is a criminal offense.

Never borrow more money than you can afford to pay back, or that will make your payments larger than necessary. You do not want to end up losing your property, and the equity in it.

When taking out a commercial loan, or a refinance loan, never sign a blank document. If while reading the contract, you put a cross through the blank spaces, someone cannot add information after you sign. You will be liable for any surprises they might add.

Do not sign anything you do not understand. Take your contract to a real estate professional or an attorney skilled in commercial or refinance loans.

Always, if buying a government home, state honestly your intention to occupy the home, or if you plan to fix it up to rent or resell. Your commercial loan may be turned down if they find you have not been truthful.

Some people get refinance loans to get a lower finance rate, and often borrow more money against the equity in their home. Some lenders may make this sound too good to seem possible. If so, it generally has some kind of catch.

Make sure a refinance loan to pay off bills or for home improvement is the best plan for you, and do not let yourself be talked into something you do not want to do. Some lending companies offer a very low financing option, only for you to learn later that there is a large balloon payment due at the end of the loan. They sometimes also add more finance, but put it into your payment to fool you.

Remember, there are many good, honest lenders that can help you with a commercial loan or a refinance loan. There are also dishonest people who will try to undermine you and trick you into financing more money than what you have planned. Stick to your original budget, and do not sign a contract if it is not exactly what was presented to you. This is a business where the representatives are paid by commission, so make sure you are trusting of this person. Asking friends or the Better Business Bureau is a good place to reference lending companies if they have had bad marks, or are considered a good business you can trust.