Loans can come in very handy when money is needed for either business as in the case of office space and equipment, etc. or pleasure whether it be a new car, home or even that vacation you've been dreaming about taking. But the loan game can tend to get confusing so when applying for any loan, you should be aware of two things right off the bat:

1. The current interest rates in the area of your lending situation, e.g. mortgage, auto.
2. Your credit score because your credit rating will actually play a huge role in determining loan interest rates as well as your probability of being approved overall.

TIP: You can get one free copy of your credit report, per year, from each of the three reporting agencies. It is highly recommended that you do so to get a clear idea of not only your score, but any errors or out-dated information that needs to be addressed or disputed as well, before contacting a lender.

Different Types of Loans

Some of the more common types of loans people most often desire are:

• Mortgages - First-time home or repeat buyer
• Residential
• ARM
• Fixed Rate
• Interest Only
• Commercial
• Refinancing
• Home Equity
• Auto
• New or used
• Student Loans
• College or Vocational Tuition
• Initial or continuing education
• Business Loans
• Corporate
• Small
• Home-based

Ignorance is Not Bliss
And depending on what type of loan you're seeking, there's a multitude of ways to go about obtaining those monies because there are lenders everywhere these days - on TV, the internet, direct mail, your local neighborhood bank, etc - anywhere you look actually. So the best advice before starting on any loan-seeking endeavor is to really do your homework. Because with so many financers and so many options, you've got to know going into the situation, what you're talking about - you need to at least have a general idea of the subject matter because you do not want to be taken advantage of by the lender based on your being uninformed and in turn, end up losing money in the long-run.

Do some research, either via the web, by making some phone calls or visiting a few lenders in-person, if necessary and/or convenient. Word-of-mouth is another way to go. Talk to friends and family members about the lenders they've used in the past and get their feedback on the experiences they've had with those companies and/or individuals.

Find out what the going rates are for the type of loan you're after. Determine what type of terms you'd be most comfortable with especially in the mortgage arena. Do you want a fixed rate loan that will lock in the current interest rate for the life of that loan or until you possibly decide to refinance? Or do you want a flexible loan that can change as the interest rates rise and fall? Would you rather pay off your loan in 15 or 30 years?

These are some of types of questions you'll need to start asking yourself once you start investigating the kind of loan you want to obtain. And your answers will of course vary dependent on that loan type as well as your individual financial standing. One last very important point is to always remember also, to never ask for or accept a loan that is more than you can afford.