Things to Consider When Applying for a Loan

Loans come in all different shapes and sizes. Understanding what loan options are available and what lenders need from you will make it easier to get the money you need. Here are some tips from bridging finance expert Richard Butler Creagh. There’s nothing like being armed with knowledge to save yourself some money, so it stands to reason that it pays to educate yourself before financing any major purchase. Here are three things you should know before you apply for a loan:

Type of Loan to Apply for

  a) Personal loans

  • Secured loans: Personal property is offered as collateral and may be granted to individuals with poor or no credit history.
  • Unsecured loans: Based on credit scores; no collateral is necessary

  b) Business Loans

  • Term loans: General purpose loans that are paid back over a set period of time.
  • Short-term loans: Smaller loans that are taken for periods of less than one year and paid back in one lump sum.
  • Equipment financing: Loans granted for purchasing equipment; equipment is used as collateral

  c) Student Loans – Student loans may be obtained through private lending institutions or through the government’s aid.

  d) Mortgages – used either by purchasers of real property to raise funds to buy real estate; or alternatively by existing property

 e) Equity Loans – used to describe additional borrowing, normally secured as a subsequent charge

  f) Car/Auto Loans – a personal loan to purchase an automobile

Interest Rates

Regardless of the type of loan you decide on, you need to pay attention to interest rates. These will play an important role in deciding the total amount of the loan that must be paid back. Since most banks and financial institutions are willing to compete for your business, it may be a good idea to seek for the best possible interest rate.Fees may not cause the interest rate to increase, but they will be included in your monthly payments. If this is the case, you might be better off choosing a loan with a slightly higher interest rate instead of paying a large amount in monthly or upfront fees.

Length of Loan

Depending upon the type of loan you need, the length of the loan will determine your total loan cost. Due different loans set up in different ways, it is best to discuss your options with a bank or financial advisor. If you do obtain a loan with the hopes of paying the amount in full prior to the due date, be sure to inquire about any prepayment penalties you may be charged.

Your Current Financial Situation

The most important factor in deciding whether to borrow money is you. Looking at monthly and yearly budgets will help you understand just how much you can afford to make in loan payments, thus helping you decide on a loan amount. If you do decide that you need to borrow money, check your current credit score to ensure that you will be approved for the best possible loan. Find out more about the different funding options available from Henley Finance by contacting their founder Richard Butler Creagh now.


Butler-Creagh Guide to Property Development

Richard Butler Creagh is the founder of Henley Finance that was established on the year 2013. He already had a successful career in the field of property development that helped him to understand the requirements and demands that professionals have when dealing with bridging finance for short term. He also designed and created an innovative way to make sure Henley Finance meets their needs.

About Richard

Richard Butler Creagh began his life in the building sector that helped him run his own company, Butler Creagh Refurbishments with its base in the North West London region. With this company, he refurbished the properties for preparing them for sale in the market. He then began to buy and renovate his properties. He made use of the bridging finance to buy the properties, let them before putting it in long term finance. He also created a portfolio that consists of 27 properties in and around the Central London area. He then understood the long term finance sector as well as the bridging sector to identify the gaps prevailing in the market for the bridging finance companies that possesses the valuation teams of their own.

Why Butler Creagh Refurbishments?

Butler Creagh Refurbishments are not dependant on outside valuers, as it wouldn’t help in assessing the projects as a whole while considering the several aspects of development. Such approach also developed further when Richard took part in the Risk Management Seminar that was held in the Van Tharp Institute located in the USA. He also realized the approach also offered him excellent confidence in the relationship that all are working towards and know what other expect of them while moving the borrowers to reach their goals. They also offer custom made products by their company through this novel approach.

Richard Butler Creagh also said that they ensure that the investors stay well protected to make sure that none of the project is affected by other project or vice versa. They also make sure that the borrowers also get enough protection based on the fact that they do not take anything unless it is viable or stood up to the process with due diligence.