I called my bank today. Three hours later I spoke to a live person at the other end of the 1-800 #. All I wanted was to set an appointment to open an account. The other day I waited an hour to get some paperwork completed that should have taken 5 minutes pre Covid 19. Times have changed. They have changed for you and they have changed for your banker. Right now, bankers are dealing with customers who are or soon will be defaulting on their credit payments due to COVID 19 related circumstances. Just like everyone else, bankers are human too and are doing their best in these trying times.
We all are struggling right now. I know you are too. Currently, I have personal challenges as well. Your banker will remember those who were easy to deal with during this crisis. Do you need to talk to your banker regarding something? Then make sure you are prepared. If you are applying for credit, make sure that you have the documentation that is required. I discuss what you need to bring to the meeting in my book How To Get A Loan: Get The Credit You Want At The Interest Rate You Deserve available on Amazon.
When you apply for credit at the bank, I recommend putting together a “Lenders Binder”. This binder will contain in a very specific order, all the documents that the banker will need for verification purposes before approving a loan. Normally you would either 1) bring some of these documents with you to the meeting, while bringing the others at a later date or 2) bring the documents with you to the second appointment when finalizing the application and signing any bank documents before the money is released. This of course takes time. Why not be prepared? Your banker will love you for it and will do everything he can to approve you. You will stand out and be remembered fondly, I promise you.
As the entire process of putting together your “Lenders Binder” is too in depth for a single blog post, I will summarize the steps. First get a 1 inch white binder, a box of page protectors (25 sheets), and a package of 5 binder tabs. These are available at your local business supply store or can be ordered on Amazon. You will then put the following documents in each section (tab). The first tab is to be labeled Character, the second tab Capacity, the third tab Credit History, the fourth tab Capital and the last tab Collateral.
Under the Character tab, put the following documents in order, each document in its own page protector: Cover letter, Reason for loan request, Contact information. Under the Capacity tab, put the following documents in order, each document in its own page protector: Copies of your last 3 pay statements, Employment verification letter, Current year Notice of Assessment and T4 (Canada) or W2 (United States). Under the Credit History tab, put the following documents in order, each document in its own page protector: Copy of current credit report, copies of current statements of all credit cards, loans, and other credit obligations. Under the Capital tab, put the following documents in order, each document in its own page protector: Personal net worth statement. Under the Collateral tab, place two empty page protectors of which you will put any documentation that the lender will give you regarding security being taken against your credit request.
Your banker will not have seen anything like this before, and will be surprised, and thankful. This binder will make the credit application process easier, and when you make someone’s task easier, they will want to help you. Yes, it will take time on your part, but you do want to get approved for the loan you are asking for, right? This will help – note I did not say guarantee approval, but help.