Essential Factors to Consider When Choosing a Private Lending Institution to Help You Settle Your Property Tax Bills
Having property tax bills over your head while facing financial difficulty can be your worst nightmare. Thankfully, private lending institutions can aid you by giving you a loan to settle the bills and avoid penalties from accruing legal action or foreclosure. However, caution is necessary here to avoid falling into the hands of predatory lenders who will leave you in a debt cycle. So, how will you choose the most suitable private lending institution for financial aid? Read this insightful piece to the end to find out.
Ø Regulatory Compliance and Licensing
Consider regulatory compliance and licensing when selecting a private lending institution that gives financial assistance like property tax loans. Ensure that the institution is licensed and regulated by any of the following local authorities:
- Texas Office of Consumer Credit Commissioner (OCCC)
- Texas Department of Banking (DoB)
Why is this important? You want a lending institution that operates within a legal framework and adheres to industry regulations. This will provide you with additional protection, which you need when dealing with lending institutions.
Ø Credibility
As much as a lending institution may have all the licenses and regulations, you must consider its credibility: how it treats its clients. Ensure you choose an institution with a positive track record of helping homeowners settle their property bills. This will assure you of a solution and relief from the stress of a potential forecloser. You can determine the credibility through the reviews of previous customers and testimonials. Ratings from relevant platforms can also help determine if a lending institution is worth salt.
Ø Loan Terms and Repayment Options
You should also consider the loan terms and available repayment options. Doing so is critical because it will help you when evaluating the cost. For instance, you can evaluate if longer loan terms will lead to higher interest rates and act accordingly. In addition, understanding the repayment options allows you to align the loan payments with your budget. Flexible terms will reduce financial burden as you can manage your monthly expenses. As such, you will also stay caught up in loan repayment.
Ø Loan Approval Process and Timeline
Since property tax bills are time-sensitive, you must consider the loan approval process and timeline before it clears the bills. You should check if the lending institution publishes the process on their website or inquire from customer service to determine if they will help. The most suitable institutions offering help, like property tax loans, take the shortest time possible to approve the loans. In doing that, they prevent facing any of the following:
- Penalties
- Interests
- Tax lien
- Poor credit score
- Legal action
Ø Customer Service9
You need a financial institution with a responsive customer service team to assist you throughout the journey. Ensure that the lending institution you intend to borrow from has a team available 24/7 to address any concerns. This will help you partner with a lending institution ready to listen to you.
Facing financial troubles when you have property tax bills to care for is stressful. Thankfully, there are lending institutions that can help you. However, caution is necessary to avoid falling into the traps of predatory lenders. Using the information you have read here will help you during the selection.
