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Preparing to Borrow - for Individuals

Preparing to Borrow

Borrowing money is a part of almost everyone’s financial lives.  Mortgages, auto loans and college loans enable us to afford things that are beyond our current financial reach.  Credit cards provide convenience in our daily lives that many find essential.  But borrowing money also carries serious responsibilities and too much borrowing or the wrong type of borrowing can cause many problems.

Some fundamentals
Before applying for a loan or a credit card, here are some things to consider:

  • Why are you borrowing?  Borrowing for things that provide long-term and lasting value should come before borrowing for things that provide only momentary or limited enjoyment.  It is much easier to justify borrowing for a home or a college education than borrowing for a great vacation or a great outfit that you may only wear occasionally.
  • Do you understand your responsibilities?  Remember that any money you borrow must be repaid along with interest.  Be sure you can afford the payments that the borrowing will require.  Also, spend some time to find the loan with an interest rate and terms that best fits your situation. 

Getting ready
Before sitting down to fill out a loan application or arranging a meeting with a loan or mortgage officer, here are some items you may want to have handy:

  • Your credit report.  Most lenders will automatically order a credit report and you should know what it contains.  A program enables you to receive a credit report once a year and you can do this at the website – www.annualcreditreport.com.  Otherwise, for a small fee, you can order your credit report from the three large credit reporting agencies by calling them:
    • Experian – 888/397-3742
    • TransUnion – 800/888-4213
    • Equifax – 800/997-2493
  • Proof of income.  Depending on the type of loan, you may need to provide a copy of a recent payroll check stub or a W-2 from the prior year.
  • Tax return.  If you are applying for a mortgage or a large personal loan, you will probably need to supply copies of at least one federal tax return. 
  • Personal financial statement.  For mortgages and other large loans, lenders may require that you supply a financial statement listing all your assets and liabilities.  It is also a good idea to prepare a personal financial statement annually as part of managing your finances.

What lenders are looking for
Remember that lenders are loaning you money that they want repaid along with interest.  This is their business and they want to make sure that you will be able to live up to your repayment responsibilities.  Along with the items mentioned above, they will be looking at other aspects of your finances to get the comfort to approve your loan.

  • Stable employment.  Having a steady job can help give lenders confidence that you will have an ongoing income to repay your loan.  If you have a history of several job changes, it may raise a yellow flag so be sure you can explain them.  For example, if you have frequently changed jobs for better opportunities, be sure to mention it.
  • Stable residence.  Lenders like to see at least six months of residence at the same place.
  • Responsible handling of other debts.  Having a solid history of timely and regular payments on other borrowing also helps give lenders confidence that you will be able to handle this debt in the same manner.

Final Words
The decision to borrow money or to apply for a loan is serious and you should thoroughly understand your side of the transaction.  Spending a little time to think about borrowing and being properly prepared will make the process easier and may improve your chances of getting the loan approved and being able to get more favorable terms.
*Loans are subject to credit approval. 

Apply Online 

Check Rates

Contact a Representative Today

Back to Education Resources

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  • Brent Barnhart Hired as Mortgage Lender for MutualBank in Granger

    Granger, INDIANA – MutualBank welcomes Brent...

    Thursday, June 25, 2015

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Personal Social Media Account Security

For many of us, social media has become a part of our everyday lives and helps us conveniently keep tabs on the people and topics we care most about.

Recently however, there has been an increase of social media account take overs by cybercriminals. As stated in the media, one contributing factor in some of the social media account takeovers has been the use of weak passwords.


Tips for creating a stronger password:


  • Passwords should typically:
    • be at least 8 characters in length
    • contain at least 1 number
    • contain at least 1 special character (!@#$$%)
    • contain both upper and lower case characters.
  • Do not use your name, date of birth, maiden name, mother’s maiden name, address, or other easily guessable words for passwords. 
  • Another way to create a strong password is to use a series of words that do not relate to each other. For example, JumpingFastRelaxStop!#.

 


Social media additional security options:


Another way to help avoid social media account takeover is to use the additional security options available. Two-factor authentication adds an extra layer of security that drastically decreases your chances of account takeover. Two-factor authentication is essentially the using of two separate components to verify your identity, the combination of something you HAVE with something you KNOW. A good example of two-factor authentication you most likely are already used to is withdrawing cash from an ATM, for example. Having both your debit card AND knowing a pin number is required to complete the withdrawal and protect your identity.

A popular and convenient two-factor authentication method is using a combination of both an online password and a text message verification sent to your phone. Enabling this type of authentication typically follows this process:

  1. Enter your password into Facebook or another website
  2. Immediately receive a text on your phone with a temporary pass key
  3. Enter the passkey received back on the site/app and you’re logged in

This may seem like overkill, but enabling this two-factor authentication will drastically decrease the chances of your social accounts being hacked. And actually, the process of setting up and using this authentication is pretty simple and convenient.

 


How to enable two-factor authentication:


Many popular social networks like Facebook, Twitter, LinkedIN, and others already support two-factor authentication. To learn more about how to do so on the most popular sites on the web, be sure to check out this article:

http://socialcustomer.com/2014/04/how-to-enable-two-factor-authentication-on-50-top-websites-including-facebook-twitter-and-others.html

Wednesday, April 22, 2015

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Preparing to Borrow - for Individuals

Preparing to Borrow

Borrowing money is a part of almost everyone’s financial lives.  Mortgages, auto loans and college loans enable us to afford things that are beyond our current financial reach.  Credit cards provide convenience in our daily lives that many find essential.  But borrowing money also carries serious responsibilities and too much borrowing or the wrong type of borrowing can cause many problems.

Some fundamentals
Before applying for a loan or a credit card, here are some things to consider:

  • Why are you borrowing?  Borrowing for things that provide long-term and lasting value should come before borrowing for things that provide only momentary or limited enjoyment.  It is much easier to justify borrowing for a home or a college education than borrowing for a great vacation or a great outfit that you may only wear occasionally.
  • Do you understand your responsibilities?  Remember that any money you borrow must be repaid along with interest.  Be sure you can afford the payments that the borrowing will require.  Also, spend some time to find the loan with an interest rate and terms that best fits your situation. 

Getting ready
Before sitting down to fill out a loan application or arranging a meeting with a loan or mortgage officer, here are some items you may want to have handy:

  • Your credit report.  Most lenders will automatically order a credit report and you should know what it contains.  A program enables you to receive a credit report once a year and you can do this at the website – www.annualcreditreport.com.  Otherwise, for a small fee, you can order your credit report from the three large credit reporting agencies by calling them:
    • Experian – 888/397-3742
    • TransUnion – 800/888-4213
    • Equifax – 800/997-2493
  • Proof of income.  Depending on the type of loan, you may need to provide a copy of a recent payroll check stub or a W-2 from the prior year.
  • Tax return.  If you are applying for a mortgage or a large personal loan, you will probably need to supply copies of at least one federal tax return. 
  • Personal financial statement.  For mortgages and other large loans, lenders may require that you supply a financial statement listing all your assets and liabilities.  It is also a good idea to prepare a personal financial statement annually as part of managing your finances.

What lenders are looking for
Remember that lenders are loaning you money that they want repaid along with interest.  This is their business and they want to make sure that you will be able to live up to your repayment responsibilities.  Along with the items mentioned above, they will be looking at other aspects of your finances to get the comfort to approve your loan.

  • Stable employment.  Having a steady job can help give lenders confidence that you will have an ongoing income to repay your loan.  If you have a history of several job changes, it may raise a yellow flag so be sure you can explain them.  For example, if you have frequently changed jobs for better opportunities, be sure to mention it.
  • Stable residence.  Lenders like to see at least six months of residence at the same place.
  • Responsible handling of other debts.  Having a solid history of timely and regular payments on other borrowing also helps give lenders confidence that you will be able to handle this debt in the same manner.

Final Words
The decision to borrow money or to apply for a loan is serious and you should thoroughly understand your side of the transaction.  Spending a little time to think about borrowing and being properly prepared will make the process easier and may improve your chances of getting the loan approved and being able to get more favorable terms.
*Loans are subject to credit approval. 

Apply Online 

Check Rates

Contact a Representative Today

Back to Education Resources

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