Though the process of applying for a bridging loan has been made fairly simple, there are certain conditions to abide by throughout the application procedure. Here are the things you’ll need to consider and the mistakes you’ll want to avoid when applying.
Don’t Hold Back Important Information
One of the most crucial aspects of applying for a bridging loan is being open and honest about both your financial state, and the purpose of the loan itself. Being secretive about your information will only lead to problems further down the line, so it’s important to tell the lender everything they need to know. While you must of course be honest in your loan application, you need to also provide accurate information in the appraisal and consultation as well, in order for the lender to accurately determine their decision.
Don’t Rush Into Choosing A Lender
While it may seem tempting to apply for a bridging loan with the first lender you hear about, it’s important you take time to do some research. There will be specific criteria associated with each lender, which means there will be different rates available too. Reputable lenders, such as Finbri, will come with their own conditions, so be sure to study the market to find the one most suitable and beneficial to you personally.
Don’t Forget To Factor In Timescales
Though payment dates and timescales will be discussed with your lender, it’s worth thinking about a realistic schedule in which you can pay off the loan and any additional costs. Due to bridging loans being limited term, you’ll need to factor in when you’ll be making your payments, as well as any further charges, should there be any. Creating a timetable for yourself ahead of your application will prevent a lot of worry in the future.
Don’t Rely On Poor Communication
Communicating well with your lender is essential throughout the entire process. Providing the right information as and when your lender requests it will not only increase the chances of your application being successful, but it will also result in a smooth and stress-free experience. Make sure you inform your lender of any changes to your circumstances along the way too – they’re there to help and support you.
Don’t Be Unorganised
Organisation is key when applying for a bridging loan, so be sure to have all the relevant information to hand so that it’s ready as and when your lender needs it. Use this time to also organise your information about the loan itself, collecting details such as how much you’re going to need, what exactly the loan will be used for, how and when you’ll be paying the loan back and what kind of security you’re going to require. Having this information stored and sorted ahead of your application will save both you and your lender valuable time.
When applying for finance of any kind, it’s easy to make errors that can cost you in the long run. With these tips, you can make your bridging loan application more secure and stable.