4 Simple Steps for Applying for a Mortgage Loan

Wednesday, August 16, 2017
Posted by admin under Mortgage Loans 

If you think you may want to buy a home, the value of pre-planning and taking action now can't be overstated. Doing four simple things will take you down the road to success when you apply for a mortgage loan and greatly improve your chances of having your application approved. Just remember, simple isn't always easy.

4 Easy Steps to a Mortgage Loan

1. Demonstrate Financial Readiness

This means having the cash you'll need for a down payment and other expenses, such as closing costs, inspections, and application fees. It means having a good credit score that shows you've paid your bills on time. And it means not having too much debt since the lender will be looking at your debt-to-income ratio.

2. Demonstrate Stability

Changes to your employment or income status can impact the mortgage process. Taking a lower-paying job or quitting your job to become self-employed means the lender will reevaluate whether or not you still qualify for the loan.

3. Know What You Can Afford

Lenders decide how much they're willing to lend you based on your income and credit report, but you have the best idea of how much you can really afford without stress.  Be smart and keep your housing expense comfortably within your means.

4. Meet with an Advisor

A good mortgage advisor can help you select the right home loan and loan rate. Most home loan applications follow a general process. While it can vary depending on the details of your particular situation, it typically takes several weeks for approval.

Getting pre-approved for a mortgage loan before looking at houses is emotionally and financially responsible. The process will tell you how much you can afford and the interest rate you’ll pay on the loan. The lender will provide a pre-approval letter, which means funds will be available as soon as a seller accepts your bid.

Catlin Bank may be able to help you with a residential mortgage. They have been serving the residents of Vermilion County.   The bank  has offices in Catlin and Georgetown, as well as ATMs in Catlin, Georgetown, and Danville.

They are committed to providing personal service with a personal touch for a full range of banking services includes residential mortgages, construction loans and various consumer loans, direct deposit, IRAs, certificates of deposits, on-line banking, debit cards and banking by phone. Contact Catlin Bank about applying for a mortgage loan.


Tagged #homemortgageloan  #easymortgageloans  #pre-approvedmortgageloans  0 Comments

Beginner's Guide to Small Business Loans

Wednesday, August 16, 2017
Posted by admin under Commercial Loans 

Small business loan application

In order to start or grow a business, or sometimes just keep the doors open and the lights on, many small business owners will need a loan. Some turn to family or friends, some find investors, some talk to a local banker about a small business loan in Vermillion County, and others seek an SBA loan.

Getting a loan can be a hurdle that takes time and causes stress, but knowing what to expect and understanding the process can reduce frustration. When you need a small business loan, here's some basic information that may help.

Why Do You Need the Money?

This is one of the first questions any lender is going to ask, so have a clear, specific answer ready. Be sure you include the benefits to the business.

What Type of Loan Should You Get?

The underlying reasons for the loan will help determine the type of loan you get. If this is a new startup, getting a loan will be difficult. Rather than look to traditional lenders, you'll need to have your own source of funds, such as personal savings. If you don't have enough money saved, you may have to borrow from family and friends, take out a personal loan, seek investors, consider a microloan, check out online lenders, try crowdfunding, or use credit cards.

You have more options if you're buying an existing business or if your business already has more than a year's history of revenue and expenses. In either case you might be able to leverage the accounts receivable, get a line of credit, get a small business loan in Vermillion County, IL, or qualify for an SBA loan.

Shop for the best loan. Determine the lender and financing most suitable for your situation. Compare small business loans in Vermillion County based on the total borrowing cost and terms. Make sure you can handle the payments, then choose your best option.

What Documents Do You Need?

If you apply for a small business loan, most lenders will want the following documents:
  • Business and personal tax returns (for prior 3 years if available)
  • Business and personal bank statements
  • Business financial statements (balance sheet, income statement, cash flow)
  • Business legal documents (Articles of Incorporation, business license, commercial lease, franchise agreement, contracts)
  • Business Plan (the Small Business Development Center located at DACC can assist you)
Applying for a loan may not be a lot of fun, but getting a small business loan in Vermilion County and getting your business on a sound financial footing and on track to meet your goals is rewarding.

Tagged Small business loans  loans Vermillion County  small business loan  0 Comments

Common Types of Consumer Loans

Wednesday, August 16, 2017
Posted by admin under Consumer Loans 

Loan paperwork

Sometimes, you may need a loan, but you aren't sure exactly which loan would be best for you and your needs. You can continue reading below for information on common types of consumer loans. If you're still curious about details, it's a good idea to speak with your bank and see what they recommend. It's important to keep on top of payments and make sure that you're only borrowing what you can manage to pay back.

Credit Cards

Some people have multiple credit cards, but they can sometimes be difficult to manage and pay back. If you're only making minimum payments on your cards, you can expect to pay on that amount for quite some time. Usually, it's advised you pay off your credit card debt as quickly as possible, since the interest rates can be rather high. Many credit cards will offer low interest or no interest for an introductory period, but after that time the interest rates tend to climb significantly. Although there's certainly no harm in having a couple credit cards, and they can assist you in building credit, it's a good idea to make sure that they keep them under control.

Personal Loans 

Whether you have emergency car repairs, a water heater to replace, or any other unexpected and larger expense, a personal loan might be your best bet. You can generally get a personal loan through your local bank or credit union, and you should be able to pay it back over a reasonable period of time and with manageable interest. A personal loan can also be a relatively easy way to build up your credit over time.

Vehicle Loans

For many people, this may be one of the first loans they ever take out. Whether for a used or new vehicle, a vehicle loan should also be kept manageable. Always remember that in addition to your loan, you will also be paying for gas, repairs, and insurance. Keep those numbers in mind to make sure that you aren't overextending yourself on the loan itself. Over time, it can build up your credit score, but there are easier and faster ways to do that.

Of course, there are also mortgage loans and other common loans available. For the best consumer loans in Vermillion County, you should always keep in mind what you need and what you can manage. Always take into account additional and associated costs, so that your loan is easy to repay.

Tagged Consumer Loans  Common loans  Personal loans  0 Comments

Factors Affecting Consumer Loan Approval

Thursday, July 6, 2017
Posted by admin under Consumer Loans 

Factors Affecting Consumer Loan Approvals

Considering a consumer loan soon? It pays to know how decisions are made by your lender. Rural loans may have different criteria than a consumer loan. While geographic location has impact, so too does the type of loan you need. Below are some of the possible criteria banks and finance companies may use to weigh your creditworthiness.

Credit score. Most of us are aware this figure is floating somewhere out there on each of us. Many of us do not know how to access the number and what impacts the score. It pays to do your research and keep your numbers as high as possible. Your overall score may affect whether you will be granted credit by an institution and what interest rate you may be offered.

Employment. Creditors may look at your current and past employment history to consider how great a risk you are for paying them back.

Residence stability. Creditors may weigh your application partly based on how long you have lived in your current residence. This is a risk assessment factor that has far less to do with your location than your length of residence in any location.

Income. Creditors will often look at your income to debt ratio to see if you can afford another loan and they can reasonably expect you will pay them back as agreed.

Other factors can also impact your application for consumer loans in Vermilion County, even though they may be subjective on the part of the lender. Are you known to the lender? Are you recognized in the community? What is the purpose of the loan? A creditor will view a request for credit from a 19-year-old for stereo equipment differently from a request for a small business loan for computer equipment which will increase business and help the consumer repay the loan. This list outlines some of the factors that may influence your consumer loan approval, interest rate and terms offered on your next loan application.

Tagged consumer loan applications  controlling your creditworthiness  loan factors  0 Comments

How to Qualify for a Construction Loan

Tuesday, May 23, 2017
Posted by admin under Construction Loans 

A couple discusses house blueprints.

There is a reason why many homeowners purchase existing homes or go with a builder in a subdivision. The process to getting approved for construction loans in East Central Illinois and West Central Indiana, is lengthy and difficult. The good news is that you can get easily approved for this type of loan as long as you meet all of the criteria listed next.

You Need a Qualified Builder

In order to get a construction loan, you'll have to be involved with a qualified builder or general contractor who has experience building a home from the ground up. Nobody is arguing the fact that you may be able to do this yourself, but a bank is not going to loan you any money to try it out. If you don't have any proven record in the building industry, then you should hire a builder or contractor for your project.
The good news is that hiring the right builder can actually save you money, because they have the right contacts with suppliers for materials, and they may already have access to a reliable crew. 

Your Lender Wants Details

It's not enough to apply for a construction loan of a 3-bedroom home. Your lender is going to want to see a lot more details. They'll want to see the blueprints, floor plans, and the list of materials that are going to be used in your home. They'll want to know how tall your ceilings are and what type of insulation material you will be using. Fortunately, you'll get this covered with the first step, as your builder or general contractor will be the one to provide you with all of that information.

You'll Need an Appraisal

It can be difficult to appraise a home that hasn't been built yet, but it has to be done in order to get the loan. The appraiser will look at the value of your land, all of the details about the type of home you're building, and compare it to similar homes in the area. The more information the appraiser has, the better. Of course, at the end of the construction, there will be another appraisal to convert the construction loan into a regular home loan. 

You'll Need a Down Payment

Many builders of subdivisions have the ability to offer you attractive financing terms with a small or even zero down payment. But when you're dealing with a construction loan for your personal residence, you can expect to come up with a rather sizable down payment. In fact, 15% is the minimum amount required for a construction loan. Some lenders might even ask you for 25%. Plus, they won't loan above the appraised value of the home, so if you want to build a fancier home than the appraisal can support, you might have to come up with the difference.

A couple checks on the progress of their home construction.

Now that you know what to expect from your lender, it's time to get all of your ducks in a row. It's a good idea to discuss your plans with your lender before you invest any money of your own. If you plan to include the property in the construction loan, this is something you should discuss with your lender ahead of time. 

Tagged Construction Loans  Development Loan  Home Loan  Consumer Loans  0 Comments