Borrowing money in this present year, 2021, can seem daunting. Non first timers have issues with what the whole concept is all about.
The first-time borrowers even tend to be confused due to the experiences of the existing borrowers. There are so many myths and lies out there about what borrowing entails.
Jacques Poujade who is a managing partner at Lend Plus and seasoned expert in the real estate industry gives an insight on what first time borrowers need to know.
What are the important documents one must have when taking a loan?
Different loan types require different documents. The documents you present for a car loan for example are different from what you will present when you are applying for a mortgage.
However, all these loans request some similar basic documents. These documents include proof of identity, bank statements and income statements, copies of property documents, and proofs of residence.
As an expert in real estate and real estate investing will you say that it is advisable to borrow to fund this type of investment?
I can assure you that taking up a loan or mortgage in 2021 is something you will not regret. As a managing partner at LendPlus, I have met people who complain that they do not have money to invest in real estate.
I just ask them this simple question, “You borrow to fund certain things in your life?” Most of the answers I get are in affirmation. So I tell them that if you can afford to go on vacations, buy that fancy clothes or buy that luxury car whether it is on loan or fully paid for, then you can afford to take up a mortgage.
It does not have to be a mansion or a fancy apartment in the suburbs. It can be something you think it is small. In the long run, you will realize that taking that mortgage is something that will change your life for good.
What can you say are bad reasons to take up loans in 2021?
From my experience and professional expertise, there are several things people take loans for that can ruin them financially especially if becomes constant. Sometimes these people’s lives portray that taking up a loan of any kind is bad. This is not so.
These people’s lives are the way because they take up loans to fund activities like vacations, wedding parties, maintain expensive lifestyles. Some even take up loans for their businesses but use the money to care of personal expenses. These will be disastrous.
You should take loans for things you know you can make money from. At LendPlus, we offer mortgage loans at cheaper interest rates.
I understand that one’s credit score and credit history have to be superb. What does credit score and credit history mean? How good are they supposed to be?
Credit score and credit history simply show that if I am giving you a loan you can pay me back at the agreed time. No matter how desperate and convincing you think you may be no organization including LendPlus will give you any form of loan.
The better your credit score and credit history, the better your chances of securing that loan at the best favorable terms. These favorable terms can include lower interest rates, higher dollar amounts, and potentially lower fees. The minimum credit score you will need to qualify for loan is 660.
So if a person’s credit score is low, is there anything that can be done to increase it?
Definitely! If your credit score is currently low, there are a few steps you can take to improve it. Have it in the back of your mind that having a good credit score will help you in other aspects asides from taking loans. Three unique steps you should take that will improve your credit scores include:
- Stay on top of your debts. Having multiple credit cards can seem good. But you should understand everything and information regarding that credit card, debts, and the interest rate attached to them.
One important and fast way to pay of the debts attached to these cards is to take up personal loans. Personal loans offer a lower interest rate. With this type of loan, you can pay your cards fast
- Be conscious of your credit: Having negative credit information can be bad. Monitor your credit properly. You should know information like what transactions did you take to make your credit the way it is.
If these factors made your credit score high then you can do them. However, if it is the opposite then you should do away with them. There are several tools online that will help you check your credit, its history, and any other information.
- Talk with your creditors: If you feel like your debts are too much and choking, talking to your creditors will help you. You can talk to them about creating a more favorable plan to improve your credit.