Questions an individual should ask a lender before applying for a loan include the likelihood of qualifying for the loan, which documents are needed for the loan and the consequences of not being able to make the payments, according to Entrepreneur. The individual should also ask about loan terms.Continue Reading
Lenders often make a credit inquiry before offering a loan, and the applicant's credit score can take a hit if he doesn't qualify for the loan, notes Entrepreneur. If the individual applies elsewhere for a loan, his credit score may be lower than it was before. The borrower is better off asking if he needs to have a specific score in order to qualify for a loan.
Knowing which documents are required for the loan can speed up the process and make the borrower look more professional, states Entrepreneur. A loan may be left open if the applicant never submits the right documents. By waiting too long to secure the proper documents, the applicant runs the risk of the documents being outdated by the time he finally submits them.
Besides asking the lender certain questions, the applicant should ask himself questions as well, according to Western Federal Credit Union. Such questions include whether the borrower truly needs the money, how quickly he can pay off the loan and whether the interest is worth whatever the loan money is for.Learn more about Personal Loans