Scenario: Choosing a lender

Now, test your judgment: Mariana is considering a loan. Which choice do you think is best for her?


Mariana’s roof leaks, so she needs to act fast. A local roofer has recommended a lender. He’s offering the amount she needs and a very quick loan process. In fact, all she needs to do is sign his standard agreement; he’ll fill in the details later. The monthly payment is higher than she hoped, but he says this can be adjusted after 90 days. Because all the roofing companies are so busy, he urges her to sign the agreement today. What should Mariana do next?
Sign the agreement today and avoid water damage. She can switch later if she finds a better deal.

The consequences of your choice

See the consequences of your choice for Mariana and hear what the coach has to say.


Mariana “I shouldn’t have signed a blank document! He didn’t write in the things he promised me. I realize now that he was just rushing me and scaring me into signing fast. At my bank they told me that some states have laws letting you back out of a loan up to three days after signing. Thank goodness our state has a law like that – but I should have checked before I signed.”
Sign the papers only if the lender will give her the low monthly payment right away.

The consequences of your choice

See the consequences of your choice for Mariana and hear what the coach has to say.


Mariana “I thought if I got the low monthly payment everything would be fine. But I found out the hard way that a low payment doesn’t guarantee a good deal. What matters is the total cost of the loan. When the lender filled in the agreement, he added lots of extra charges we hadn’t discussed. I should have insisted on getting all the terms in writing – and made sure I understood and agree – before I signed.”
Don’t sign! Shop and compare more loan offers.

The consequences of your choice

See the consequences of your choice for Mariana and hear what the coach has to say.


Mariana “Thank goodness I didn’t sign! When that man was rushing me to sign a blank document, I knew something was wrong. Even though I was in a hurry I knew I should ask a lot of questions, shop around and compare. I ended up finding an established lender with a good reputation and satisfied customers. They gave me everything in writing so I could check the numbers.”
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The basics of loans Compare the terms Compare interest rates The loan process Choose a lender the smart way Warning signs to watch out for You’re at risk Scenario: Choosing a lender If the lender says no… Scenario: Managing a loan