Getting Loan Advice

2007-03-08 10:33:40

( Financial )



Loan Advice Before You Borrow

Borrowing money is not a simple task. You need to consider a lot of factors such as the amount you will borrow, length of mortgage period, points, and loan charges. You need to know what parts of your personal credit information will affect the lender's decision about your loan application. More importantly, you need to determine whether you can properly service your debt obligations.

Fortunately, you can consult mortgage advisers who can help you even before you borrow any money. These mortgage advisers can explain to you about the different types of loan packages such as fixed or variable mortgages, as well as repayment patterns of each type. They can give you a rough estimate of the costs you will incur, particularly interest charges, attorney fees and state taxes. Mortgage advisers also provide up-to-date information on latest offers that you may not be aware of. With such loan advice, you can make a sound decision about where and how much you borrow.

Online sites on mortgage advice even have built-in calculators that will give you estimates of your periodic payments. Just fill in the spaces with the loan amount, the payment period and the tentative interest rate.

Loan Advice for Credit Problems

Even after you have signed up for a loan, independent mortgage advisers can still help you deal with any problems that may arise during your mortgage servicing period.

Mortgage advisers inform you about possible actions your creditors might take against you, and your rights as a borrower. They can also inform you about your creditors' limitations in problematic loan cases.

They can help you formulate a good debt management plan and which creditor to prioritize when you pay your obligations. Mortgage advisers can refer competent lawyers if you need to file for bankruptcy or take the loan problem to court.

Where to Get Loan Advice

Most of the entities who provide loan advice are non-profit and charitable in nature. Hence, the loan advice they don't charge you any fee for the advice. However, their free services are limited to information and referrals only. You will need to pay extra for consulting a lawyer that they have referred to you. You also need to shoulder any documentation expenses.

Limitations of Mortgage Advisers

While mortgage advisers try to give you the most accurate and reliable information about borrowing and servicing debt, they have absolutely no control over your creditors' decisions. They cannot act as your legal representative, and that is why they need to refer you to someone else who can act in that capacity.

You cannot hold any mortgage adviser criminally or morally liable for any information they have provided, or for any actions they have taken to help you.


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