How can you easily borrow money from your family and friend?"

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by: DennisKruiks
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Word Count: 374
Date: Mon, 17 Jan 2011 Time: 8:30 AM
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Many of us have big families and friend's circle having a kind heart and heavy wallet. They can easily help you in your rainy days. But this is also a real fact that many family members don't have kind heart even then they have extra money with which they can help you. They do so because they have fear that the borrower will become relax from borrowing money from them and will not return money soon. So, if you make them assure that you will return money because you have signed bondage. Many people borrow money in order to build their homes. In this way they usually use "intra-family mortgages" that is of 10-100% of the real purchase price. To avoid the pitfalls and hassles of mixing relationships and money you need a certain plan. The best thing is to make a deal while borrowing money in order to make all things clear in the mind of both lender and borrower. Here are some steps to borrow money from family and friends.
Step 1: You need to find a lender that has enough money to lend you. The lender must be in your family or your friend. It is better to choose the lender who trust you and like you. True friends always want to see their friends happy and prosperous.
Step 2: Draw an agreement that is acceptable to both parties. Agreement is very necessary thing to make each and everything cleat in the mind of both parties. The things or terms you need to consider are intra- family mortgages averages, interest rate and other alternatives.

Step 3: You need to create some formal documents that make you and the lender bound to the agreement. Written documents have importance to make all things systematize.

Step 4: Another important thing is to set up a repayment plan. In order to input your loan terms you need to use a loan calculator. The good and trusty thing is to send a check in advance of due dates.

Step 5: If you follow all above steps then finally you will be able to return the loan easily. Be thankful to your friend who helped you in the difficult part of your life.

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