Top Ten Tips On How To Be a Smart And Savvy Borrower

Be Patient!!! Take time to work on any debt and credit issues before looking to buy a house or finance home improvements. The desire for a “quick fix” to a financial problem can result in a much bigger problem (such as losing a home to foreclosure) down the line.
Caveat Emptor! Let the buyer beware! Be suspicious of people who come to your door or call you on the phone or mail you flyers offering to “help save you money” with “Bad Credit? No Credit? No Problem!” offers.
Remember Grandma’s warning: IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS!
KNOW YOUR CREDIT SCORE. You may not be as big a credit risk as the loan agent says (the lower the score, the bigger the credit risk, and the higher the interest rate charged). DON’T GIVE OUT YOUR SOCIAL SECURITY NUMBER UNTIL YOU’VE DECIDED ON THE LENDER. Inquiries on your credit will lower your credit score.
GET FINANCIAL COUNSELING BEFORE SHOPPING FOR A LOAN OR SIGNING A LOAN APPLICATION. Meet with your local Housing Counseling Agency and go over your credit report and budget so you will know your options and affordability levels.
YOU BETTER SHOP AROUND. Getting a loan is like purchasing any other product or service – the lender is not doing you a favor; you will pay them well for the money you borrow. So investigate all your financing options – call other local lenders and get quotes. Ask about the interest rate, the term (length of the loan), “points”, fees, pre-payment penalties, balloon payment required, etc.
MAKE SURE YOU CAN AFFORD THE LOAN. Just because they will lend you the money doesn’t mean you can afford to make the payments. Predatory lenders are interested in the up front profits and the collateral (your property) more than your ability to make timely payments. Prepare a written budget – your income and actual expenses each month and determine what you can afford.
DON’T BE RUSHED INTO SIGNING A DOCUMENT. It’s a good idea to have your own policy that you will not sign anything at the first meeting. Take time to read all the fine print before you sign anything. If it isn’t in the contract, it doesn’t matter what the person TOLD you. NEVER SIGN PAPERS THAT CONTAIN BLANK SPACES.
JUST BECAUSE A LENDER IS LICENSED BY THE STATE OF GEORGIA DOESN’T MEAN THAT IT IS A REPUTABLE, “GOOD” LENDER. The license simply reflects the owners have experience in the lending business and have certain financial assets – it does not certify the quality of their business practices.
TAKE CONTROL OF YOUR FINANCIAL FUTURE. TALK WITH YOUR FAMILY ABOUT MONEY MANAGEMENT. People living under the same roof often don’t discuss their personal finances. Take charge of your money; discuss your budget; set financial goals; and teach children about financial choices and decisions you make every day. See who can save the most each week!