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Guide to a Healthy Borrower-Lender Partnership

Mortgage Loan FinancingA banker will want to protect customers’ deposits, earn lucrative amounts of interest and see their financials investment flourish. They will also want borrowers to prosper, create more accounts with them and become long-term partners. But lenders and bankers should reach an arrangement so their finances could flourish. This is a step-by-step guide towards creating a healthy financial relationship.

Avoid surprises

It’s prudent that you reveal everything to your banker every time you face a financial crisis. Forbes advises that you write your proposal early enough. Explain why you need the money and how you plan to repay the loan. Back up your proposal with evidence and facts. This gives your lender an easy time to assess the viability of your loan and make an informed decision.

Know your loan type

Loans vary in terms and purpose. Choose a package that best suits your financial problems. If you apply for a mortgage or VA loan program, you should remember that they could last for several years. Unlike other small business loans, their terms of payment can be different. Applying for the wrong loan type will not only have adverse effects on your finances but its likely to strain your relationship with your lender.

Know your banker

It pays to know your banker. Even before you drop your proposal at their offices, book an appointment and meet over a cup of coffee. Get to know if your lender has your financial interest at heart. Top bankers will strive to support your business financially. They will also advise you on the right loan amount so you can comfortably sustain your business parallel to the loan repayment.

An excellent borrower-lender relationship doesn’t just keep your lender aware of your business operations, progress, and performance but also enables them to study your financial situation. This protects you from the tedious and challenging loan application process that an ordinary or new borrower will go through before getting approved.

July 19, 2018 at 1:00 amFinance