The Decisioning Process

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The Decisioning Process

We start with the different types of banks that are out there commercial banks savings banks credit unions commercial banks come in three sizes community regional and national they can be public traded on the Stock Exchange with a privately owned and they offer business and consumer banking products savings banks which are also called Savings and Loans thrifts specialize in real estate financing and the credit unions are not for profit institutions that specialize in consumer deposit and loan services.

Personally I like to stay local in on the smaller side. So I am drawn to community banks and credit unions. Generally speaking these smaller banks are closer to the market they’re more willing to make the extra effort to understand personal circumstances and they’re more willing to negotiate prices and terms.

In my experience that said let me just give you a window into the four decisions that every lender makes first whether or not they’re going to prove your application which is another way of saying whether or not they want you as a customer.

This is where the character and conditions seems can come into play. That’s how much they’re willing to let what you’re asking for is really beside the point as far as the levy is concerned.

It’s what you’re eligible for. We’re deserve to borrow based on the collateral we have in mind which is another five say your financial capacity and your financial capital another say number three the terms and conditions they’re going to require these there are always Terms and Conditions strings that are attached to the loan that you’re seeking.

And finally the price that they have in mind to charge you for the loan which is comprised of interest rates and fees. As I mentioned some time back.

Banks make money by listening to others the cash that consumers and businesses placed on deposit with them but not before warming it up to cover costs risks and the amount of profit they want are loan pricing takes.

All of this into account and it’s up to you know how to compare the deals between financial institutions. So for about this moment.

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