Refinancing: Protecting your Relationship

by : Martin Lukac

The relationship that you have with your guarantor is very important, so important in fact, that there should be full disclosure between you and your guarantor. You should ensure that they are always in the loop so that they are secure in the fact that they are putting their security at risk and that you are willing to do the same to attain the loan by refinancing any loans that you have running. Show them that you are a steady person that consistently meets your repayment schedule.

Your guarantor is in essence agreeing to be responsible should you be unable to repay your debt. In some cases they even take the chance and provide the down payment for your loan. All this puts a lot of responsibility on your plate and it is important that you quickly realize this. This is why it is essential that you do all in your power to avoid defaulting on the loan and breaking the trust that your guarantor has placed in you. Provide your guarantor with information such as:

"A copy of the loan agreement "A business/ repayment plan that has been thought out and constructed by you "A list of your assets and securities "A breakdown of your obligations as a borrower and the guarantors obligations as well

A guarantor is a key person towards securing refinancing loan especially if you have bad credit however if you do not have bad credit then they are an added bonus and they will be even more willing to support your endeavors. It is possible to have a guarantor but also to secure your loan with your own assets by refinancing as well.

Asking a guarantor to secure a loan with their assets is also a possibility but this means that they have to be will be putting their assets as collateral for your loan. Lenders will often ask a guarantor if they are willing to secure the loan with their assets if you have bad credit. This means that if they are unwilling to do this then you possibly will not get the loan.

Discuss all possibilities with your guarantor before you get to the lender as this occurring at the lenders office is a sure fire way to ensure that you are turned down for the loan. Full disclosure will mean that your guarantor is prepared for all turns of events and if you have bad credit you will not go to your lender with a guarantor that is not prepared to secure your loan. This happening will not help the situation so ensure that all possibilities are examined before your visit.

A great relationship with your guarantor will ensure that your chances of getting a loan or refinancing are perhaps increased by as much as 100% and you will be on the road to success in building your property portfolio in no time at all. If you are serious about building your property portfolio then approach it in the right way and move towards the protection of your relationship with your guarantor.