A loan is the ticket to achieving some of our biggest goals in life, that we couldn’t afford otherwise — from buying a home to starting a business or going to school.
The most important thing to remember is that taking out and repaying a loan is not intended to be a stressful experience. Here are some basic tips to help you understand how loans work.
Interest is the amount charged by a lender to a borrower for the use of the money, often shown as an Annual Percentage Rate (APR). The ARP represents the yearly cost of the loan, including fees.
A term is the period in which you agree to pay back your loan.
Once you've done your research and have a budget, you can arrange to meet a loan officer. A loan officer has a comprehensive knowledge of lending products, rules and regulations, and the documentation required to obtain a loan. They act as the liaison between the financial institution and the borrower, and will try to find an arrangement that is in the best interest of both parties. You can set up a meeting with a friendly, helpful Sunrise Credit Union loan officer here.
Research plays an important role in helping you find the right loan product. The process isn't easy, so taking your time and being thorough can save you years of financial stress. You should never feel pressured to sign anything on the spot. Remember, this is your loan and your future. You're in control!
