By Frontino Gamelin at October 02 2018 00:05:46
Borrowers should create a folder to store loan document records, along with a record of phone and email correspondence. Always keep track of phone conversations by writing down a summary of the call, date, time, and name of the bank representative spoken with. When important documents are mailed, invest in the extra protection of tracking receipts. Certified letters should be sent with a return receipt request in case it is necessary to provide evidence the documents were received.
The interest rate for these types of loans is plus 1 percent of prime and is adjusted monthly. For these types of loans, borrowers are completely responsible for all third party costs and points can be bought with these types of loans to keep long term costs down.
Be careful applying for private loans with banks. If your bank requires a co-borrower to sign on the agreement before the loan is sanctioned, make sure that your co-borrower has a good enough credit history. Not having a good credit history could jeopardize your chances of getting the private student loan that you would have otherwise got stand alone.
One contract that you will need to have a working knowledge of is a construction loan agreement. Let's take a look at what a construction loan agreement is and why having one is so important.
The first section contains the terms that are to be used in the document and their definitions. The second section is concerned with the operational terms relevant to the agreement, which means that it points out the amount to be borrowed, the schedule of its repayment, and the interest on the repayment. The second section of the loan agreement is of special interest for the financial agents of the borrower.