When you have excellent credit and you need a loan, you can make banks compete for your business. You may have heard of this method of getting a loan, but if you have never actually done it, you might be at a loss for getting started. Start with the bank you bank with regularly. Find out what kind of interest rates they offer and how much you can borrow. Then follow this system to get the best rate and the best loan.
Check out Three (or More) Other Banks
Find banks that are boasting interest rates that appeal to you. Apply to them for the loan you want, and do not low-ball the loan amount. If you balk at how much you want to borrow, you will not get the amount you really want when this game of competing banks gets underway. Drop any bank that tells you that they will not give you the loan at all. Find another bank that will. Ignore the interest rates offered for now, and do not jump at a loan unless the terms, amount, and interest rate beat out everything else you have been offered.
Pick Two or Three Banks Offering Close/Similar Rates
Your next step is to pick two or three banks that are offering low interest rates that are very close to each other. Call up the loan officers, ask if you can conference everyone in, and then address each loan officer by bank and name, and say out loud what each bank/lender is offering. Let these loan officers know what it is you want and what you are expecting from them.
The Haggle and the Competition over the Phone
They will start conversing together and with you over the phone about what they are willing to do to get you this loan. The winning bank and lender is the one that is willing to go the extra mile and give you exactly the amount you want to borrow for the lowest possible interest rate and the number of repayment months you want as well. When you get one lender to nail down the terms and details this way, then you can walk into the office of that bank and that lender and sign the loan documents. You will know that you did exactly what you should have done to get your loan, and that you had banks willing to go the extra mile.
Contact the loan officer at your bank to get the information you need to apply.