Secret #2 from GET Your Loan Closed!

HOW TO START WITH THE RIGHT LOAN PROGRAM

Now that you have started on your educational path of Understanding the Loan Process we need to examine how you select the right loan program.

Why is this important?

In a nutshell - By starting with the right loan program your chance for Loan Approval will be much closer at hand.

There are many, many loan programs available. Every bank, broker or friend will recommend an alternative loan, especially after you have started the loan process with one financial institution. It never ceases to amaze me that everyone from your hair stylist to your neighbor is both an expert on Real Estate and more appropriate to this report, an expert on Finance.

This white report will not discuss which loan program is right for you but more importantly you will learn how to know which loan program is right for you. It would be impossible in the medium we are working with today for me to tell you which loan program you should go with. I would be just like your hair stylist or your neighbor. Only you can decide which loan program is the right one for you. Also each new project that you undertake should have a new loan program. Positive results from your last loan program do not automatically mean you should use the same approach with your next project. I recommend that you apply the same process you are learning in these white reports to all new loan scenarios.

How do you know which loan program is correct for you?

The answer quite simply is IT HAS TO FEEL RIGHT!

Now wait a minute Harlan is that all there is, “It has to feel right,” that does not sound technical or even intellectual at best.

As Bruce Lee, the legendary Martial Artist said to his young disciple as he thumps on his chest in the movie Enter The Dragon; “Feelings, You have to feeeeel it, not just do it!”

If the loan selected with all its financial nuances will keep you up at night, then it is not the right program for you in your current situation. So let’s examine the different alternatives when it comes to loan programs.

What types of programs are there?

The most well know programs are Variable versus Fixed rate programs. These categories apply to residential as well as commercial projects. Since this is a commercial and business loan white report I will address only the commercial aspects and leave the residential loans for the experts.

A variable rate loan program will help you to qualify today, but you are subject to the “winds” of the financial storms that inevitably arise and are omnipresent in today’s economic environment. With a fixed rate loan program you know all the variables that will never alter either upwards or downwards. More on this important question in , GET Your Loan Closed!

Another obvious difference will be when it comes to recourse vs. non-recourse loans., understand more by reading GET Your Loan Closed!

So you, as the astute borrower have to measure the likelihood of getting a loan versus the benefit of not having to worry about any other of your personal assets being at risk.

Another important factor to analyze is the loan term. Are you looking for a thirty year, more likely twenty years in commercial, or are you looking for a quick three to five year loan?

The next area you need to examine is that of your down payment. Do you want to use your capital or do you want to do as the money moguls of the 90’s, leverage as high as you are able to, and buy as many properties with as little of your own cash as you can. Lots more points are covered in our 95 color page book, GET Your Loan Closed!

Once the above points are understood you are now ready to talk to different lenders in order to determine which loan programs will meet your immediate needs and which will grow with you as your financial concerns and the economy changes.

A knowledgeable financial broker should be examining all of the above issues and more, before presenting any loan recommendations for your consideration. Any lender/broker/BDO, who immediately tells you that you have to take this loan program, is not looking after your best interest. They are selling you what the bank wants pushed that day. Yes, bankers are sales people also. They have certain product or services that they produce a higher commission, thus they will tend to lead the client in that direction.

I’m not saying all bankers are that way. The hand selected lenders that I personally work with would never look at the banks interest ahead of that of the client’s.

We will always ascertain what is best for the client today, as well as what is best for the client in the future. Now that you have the knowledge, you realize what to ask your lender. You will be able to immediately understand whose interest the lender has in mind, yours or his. That could make all the difference in the world when it is time to GET Your Loan Closed!