When shopping around for a secured loan, borrowers will often come across the term “consideration period.” What is this?
The consideration period is the time lenders are legally obliged to give the borrower to review all documents related to the secured loan. Lenders should not contact borrowers in this period, as doing so invalidates the loan documentation. The consideration period gives the borrower time to fully review and consider how much they are borrowing and the terms of the loan, as well as how comfortable they are securing the loan against their home or another asset.
Borrowers should make full use of the consideration period to ensure they’re happy with all aspects of the secured loan proposal.