There are different ways to apply for a bank loan. Often it is the TYPE of loan you are applying for that determines the approach.
If you are applying for something like a signature loan, mortgage loan or business loan you may be applying directly with the bank or through online applications.
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Talk with A Professional
Make an appointment with a loan officer at your bank. Sit down with them and discuss the type of loan you are seeking, what your goals are and a bit about your financial situation. The loan officer may be able to give you guidance and offer options you had not considered.
Provide Your Information
One of the first things you will be asked to do is fill out a credit application. The application is the banks method of gathering demographic, income and credit history information about your.
Be prepared to give information such as:
- Name
- Address and Phone Number
- Date of Birth and Social Security Number
- Employment Information such as name of employer and length of employment
There may be other questions depending on the institution’s internal policy and the type of loan.
The Bank Analyzes Your Information
Their procedures may look something like this:
- With your name, date of birth, address, and social security number a credit report and/or credit score is requested from the credit bureau(s)..
- The credit report lists ‘inquires’ from companies you have applied for credit with. Lots of inquires are a bad indication, as it appears you are constantly shopping for credit.
- The bank will look at your ‘debt-to-income ratio’.This is a good indication of whether you can afford the loan. Know your on debt-to-income ratio.
- How long have you lived at your place of residence? The bank wants to know if you are fairly stable or do you move around a lot.