Expectancy crisis: banks fail offering more loans
Loans may be more difficult to obtain at the moment; preparation is imperative.
11:10 05 June 2013
Recent news shows that banks are lending less money than hoped, although there have been improvements. For the public, this means that obtaining desired loans such as mortgage loans could be difficult.
Banks may focus mainly on business lending in hopes of stimulating the economy more. If you are looking for loans, there are a few things you can do to try and obtain them.
- Comparisons are the key with this type of market so don’t rush into any decisions. Take your time and review as much information as possible about the banking institutions and the applicable loans that meet your needs.
- Interest rates may not be favourable, but keep in mind that once the economy improves, you may have the ability to refinance. You may need to decide whether or not to accept a less-than-desirable interest rate or to give up any chance of loans at all.
- Ensure that your credit rating is as stable and favourable as possible. If there are any blemishes do what you can to correct or resolve them. If there are disputes, deal with those first before approaching any banks for assistance with loans. Taking care of those items will also help expedite the process if you are approved.
- You may need to contact multiple banks to see which one will give you the best deal. Check for applicable fees, regulations, policies, interest rates, and anything else relating to the loans you inquire about. Though you may end up contacting many financial institutions for loans, try to minimize any impact to your credit rating.
- The likelihood of receiving approval for loans might increase if you save for a while and can produce a sizable contribution at the time of application towards the loan. If you have a way to increase your equity, do that first so the banks will have less risk, and will be more likely to give you the loans you desire.