Do you want to ask for a loan and you don’t know how? The truth is that many people, before asking for a loan, find themselves assaulted by a sea of doubts: Will they give it to me? What do I have to do to get it? What documentation do I have to bring? Can I qualify for a loan if I already have another debt owed to an entity?
These and many other questions are the day to day of thousands of people who want to qualify for a new line of credit. Therefore, in this article , we have made a small compilation of all the things you should know before requesting a loan. From becoming familiar with the banking and economic language to understanding the risks and conditions of each type of loan.
And there are loans such as punches: more and less interesting, of greater or lesser amount, to be repaid in more or less time and with a variable or fixed interest. In addition, personal loans such as mortgage loans have different rules. Here we tell you everything!
Difference between credit and loan
The difference between credit and loan is, to begin with, one of the questions people ask the most. Thus, when we have an open loan, what we have approved by the bank or the financial institution is the possibility of being able to use up to a maximum limit (which will be the credit limit). In this case, the return and interest would be calculated by the amount that has been borrowed effectively and not by the maximum.
On the other hand, a loan is when a fixed and agreed amount is left . In this case, the repayment of this amount occurs through periodic payments (the installments or letters of the loan) in which, in each of them, a part of interest is returned, which is the profit that the financial entity has or bank when leaving the loan.
Personal or mortgage loan
The loan requested can be in two ways, personal or mortgage. In a personal loan there is no special guarantee nor is there a link between the loan and a particular object or thing. The borrower responds with his present and future assets for the debts in which he incurs.
On the other hand, a mortgage loan or, as it is more commonly called, a mortgage, what entails is the linking of the loan to a real estate. This real estate, for example, is registered in the property register as mortgaged and, in principle, is the first good with which the loan is amortized in the event of default. In some countries it is the only way, because there is the concept of payment dation that is not yet in Spain.
In Spain there are some delinquent lists. These are popular records but this is not the only one. They are lists that include people who have been considered delinquent. That is, it is not about lists of people who have an open loan or credit, but of people who have failed to pay the monthly payments or letters or have not returned anything.
Normally, being included in these lists may mean that some banks are totally eliminated and that they decide not to leave the money to that person. However, other banking entities decide to continue despite the client’s registration in the registry. However, it is always better not to appear than to do so since in certain occasions it may be a requirement to request a loan.
Analyze the financial situation
Before asking for a loan, something we recommend you do is analyze your financial situation. Can you face the payment of the letters? What amount do you need? These types of questions are key before launching to ask for a loan. In addition, things will clarify a lot in order to know what type of loan we need and how to request it. This is, in our opinion, a fundamental requirement to request a loan.
Although there are concepts that are for everyone the same, all loans are not equal. For example, when opening a mortgage it will not be the same to do it with a bank that charges us the appraisal than with one that does not; nor will it be the same to go to a bank that charges us an amortization commission than to another that does not. This type of thing may seem banal but as the popular saying “the devil hides in the details” says. You have to take it into account to know where to ask for a loan.
Asking for a loan is not just knowing if you can pay the money or knowing how much we are going to need. It is also to know the language, understand what each comma and each point is and what we are talking about when we talk about amortizing, interest rate, APR, TIN and other things. This will allow us to make an informed decision and not make mistakes when deciding where to ask for a loan.