Moving into a new apartment can be both an exciting and stressful time, however, many first time tenants find that the initial demands placed on them are very difficult to meet. In some cases they will be asked to pay the first and last month’s rent up front, in addition to a security deposit and other fees related to keeping pets or other things.
It can add up to a sizable chunk of money, but luckily help is at hand if you need it. Many tenants may be eligible for a personal loan to cover these costs and the general costs of renting the apartment. Simply follow the steps below to find out.
Create a full list of every expense that you expect to encounter as part of renting the apartment. This can give you a solid idea of how much you are likely to owe each month and be able to stack it up against your personal finances to see how you would fair.
Speak to any banks, financial institutions and private lenders in your area to discuss the possibility of a loan and ask what terms that they would offer should you be accepted. Important things to find out are the following:
• The Annual Percentage Rate (APR) of the loan
• The payback plans that are on offer
• How much flexibility is offered in the loan
With all information gathered from each financial institution, choose the one that is making the best offer for you. Remember that is always good to have a large range of options, so don’t simply plump for the first loan that you were offered. Instead, be very careful to consider the future ramifications of each option that is presented to you and make your selection accordingly.
Once you have made your selection, speak to the financial institution in question and ask them to send the personal loan application form. Make sure that you fill this out completely and accurately. Any inaccuracies may cause issues further on down the line so be completely honest about your personal situation and the reasons for taking out the loan.
Furthermore, you will usually need to provide identification, such as a driver’s license or passport, in addition to social security numbers and evidence that you have a regular income and thus can repay the loan.
Send the application back to the financial institution and wait for it to be processed. This can often take a week or two, so ensure that you have made arrangements with the potential landlord to ensure the apartment is still available for you. When the loan has been agreed you will be contacted by a loan agent, who will hash out the final details and have you sign the agreement. You are now contractually obligated to follow the conditions of the agreement and must do so at all times.
The money will be transferred to your bank account and can be used to cover any expenses you deem necessary.