Getting a Loan
Good Morning Sir, how may I help you today?
I would like to apply for a loan please.
Very good, and what kind of loan are you looking for?
I want a loan to buy a new home.
And how much were you hoping to apply for today?
I was hoping that I could apply for a $250,000 home loan.
First we just have to see if your credit is good enough for a loan that large.
I have a credit score of 760.
Excellent! And I also see on your credit report that you have always paid on time.
Yes, I know how important it is to pay your debts and pay them on time.
Will you be making a down payment on your new house?
I have ten thousand dollars available for a down payment and I would like to finance the rest.
I have just a few more questions for the application. What is your gross monthly income?
I make $750 a week, so I suppose my average monthly income would be about $3000.
How long would you like the life of the loan to be?
What are my options?
You can choose between a ten, fifteen, twenty or thirty year loan.
What is the difference between a fifteen year loan and thirty year loan?
A fifteen year loan will mean higher monthly payments, but you will pay less interest.
So a thirty year loan will mean lower monthly payments, but I will end up paying more in the long run?
That is right. Which would you prefer?
I think I would rather pay it off sooner and not pay as much interest.
Then we will sign you up for a fifteen year loan.
What is my interest rate?
Based on your credit report and excellent credit score, your interest rate will be 5.9%.
That is great! Where do I sign?
Just fill out this remaining paperwork and we will get you into your new home.