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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

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  • Mutualfirst Financial, Inc. Announces Agreement With Major Stockholder 

    Muncie, Indiana - February 27, 2015 – MutualFirst...

    Monday, March 2, 2015

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Proactive Steps to Take in Light of Anthem Data Breach

Chances are you are a person who has Anthem insurance coverage or you know someone who does. As a result, either you or your friend has a reason to be concerned.

A typical data breach includes a compromise of debit card numbers or partial personal identifying information. This kind of breach, though inconvenient, can typically be ‘fixed’. An initial investigation indicates that the Anthem breach includes a compromise of name, birthday and/or social security number. This kind of information is all one needs to steal someone’s identity.

According to Anthem this particular breach could affect up to 80 million people. Instead of trying to ignore this has happened or just being upset, it’s now time for you to be educated and try to protect yourself as best as you can. We have some tips that will help you accomplish that.


1. Review Your Statements


First, take a moment each month to view your eStatement or monthly statement. You can monitor your accounts throughout the month with Online Banking and the MutualBank App. Monitoring your accounts will give you the quickest opportunity to see if your accounts have been compromised. If you notice any transactions that are unfamiliar or questionable, please get in touch with your MutualBanker. Call us at 800-382-8031.


2. Be Cautious with Any Anthem Emails You Receive


Next, if you receive an email stating it is from Anthem, be cautious. Anthem’s website warns customers not to reply with information, click any links or open any attachments within the email. Anthem is not calling their customers and will not ask for information. Never give your credit card information, social security number, or other sensitive information to someone via email or over the phone.


3. Consider Freezing Your Credit


If you are a resident in Indiana, the Attorney General’s office website (http://www.in.gov/attorneygeneral/2853.htm) is offering and encouraging you to sign up for a free credit freeze with each of the three credit bureaus. A credit freeze places a hold on your credit where a new line of credit could not be obtained without you unfreezing your credit. This doesn’t affect already open credit lines like an existing credit card, yet helps to protect you against someone opening new lines of credit in your name.


4. Keep in the Know


Finally, try to keep in the loop on the Anthem Breach. The best source for current information about this breach can be found at Anthem’s Frequently Asked Questions. (http://www.anthemfacts.com/faq)

MutualBank is here to help inform you of ways to help protect against identity theft. Thank you for trusting us.

Sunday, February 15, 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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