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Loan Review Checklist

 

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Loan Review Checklist Read this Loan Review Checklist to find out what things to consider when planning for borrowing money in the form of a business loan. The checklist highlights such topics as Dealing with a Broker, Estimating Loan Fees, Negotiating Loan Terms, and Refinancing.


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Dealing with a Broker.

  • Be sure you deal with a qualified mortgage broker who will do loan arrangement for your business
  • Check if the broker has a license number
  • Determine if your broker offers an option for reselling your loan
  • Make an appointment with the broker for arranging loan appraisal and evaluation
  • Find out who you will make payments to (to your broker or another party)
  • Talk to the broker to find out whether there are any administrative or court proceedings pending against you

Estimating Loan Fees.

  • Find out the total amount of fee you will be charged for arranging your business loan
  • Identify your broker’s fee
  • Be sure you know other people and/or organizations you will pay to
  • Check if you should also pay a referral fee or other similar fees
  • Find out if you’ll be charged for preparing loan documents and underwriting
  • Check if you need to pay for credit reports
  • Determine a fee for loan appraisal
  • Have a fee payment schedule

Loan Terms.

  • Find out what kind of loan agreement you’ll need to sign
  • Check whether there is a need to get a co-signer to receive your business loan
  • Know the interest rate of your loan
  • Be sure this interest rate is competitive and not so high
  • Confirm that the amount of loan will be enough to cover the value of your investment
  • Talk to your broker to check if there is a line of credit or similar unsecured loan available for you
  • Find out what loan payment options are available for you (e.g. balloon payment)
  • Define the amount of monthly payment
  • Be sure your monthly payment is enough to make your outstanding balance go down each month
  • Check if you can buy disability insurance as part of your loan
  • Find out if there is a penalty for overdue or early payments
  • Check if there a mandatory arbitration clause in your loan agreement
  • Find out if you will be asked to pay off your old debts (if any) prior to getting the new loan
  • Figure out whether your new loan will turn some of your unsecured debts into secured ones

Refinancing.

  • Find out if there is an option for refinancing in your loan agreement
  • Define the interest rate and fees for refinancing
  • Check whether your new interest......


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