What to Ask Before Filing a Property Tax Loan?
When it comes to applying for property tax loan, expect that you will be spending more time filling out paperwork than going to church on a Sunday. What are these paperworks for? These are basically forms that will let the lender know that you are capable of paying the loan and if you have the eligibility to get the loan in the first place. So what should you do to know that you are really ready and eligible for the loan that you want to apply? These 10 questions will help you clear out indecisions when you are starting an application.
What are the odds that I will qualify for the loan?
When it comes to property tax loan application, don’t apply for it if you are almost certain that you will not get it. This is because you will only be hurting your credit if you apply for a loan and you are not approved.
How much do I, in truth, need?
Before you head to the bank or the lender, figure out how much money you actually need. One of the best ways to handle this is by examining your monthly cash flow reports.
How much is my collateral worth?
Most lenders like Direct Tax Loan think that if they have something that is worth $150,000 as collateral, they can also equally borrow with that same amount. Note that most banks don’t usually agree to this. This is because banks usually lends up to a certain percentage of the real value of the asset.
Do I have enough cashflow to repay the loan?
It is most likely that your lender will ask you to present them your financial projections. When you are asked to do so, make sure that you have included your debt repayment plan in the projection.
Will the loaned money help my business or family grow?
Before you even considering applying for a property tax loan, make sure that you are very sure that the money will surely help your family or business grow. Be honest with yourself so you can narrow down your options.
How is my business credit score?
Most lenders are aware of their personal credit score, but have no idea what their business score is. Make sure to check your business credit score and try boosting it if there is a need to.
Are your personal finances stable?
Aside from you business credit score, make sure to check your personal finances before applying for a loan, whatever type it is. Do you have outstanding student loans, credit card debt, and the like?
Do I have all the papers needed to apply for the loan?
This is one of the most important questions that you must answer when applying a loan. If you lack one, even just one document, for sure you will never get the loan.
In the case of your demise, how will the loan be paid?
Note that in case of death, the bank may come after your life insurance policy to pay for your loan. Don’t think that if in case of death of the lender, the bank is utterly out of luck.
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