Is This Personal Loan Contract Safe to Sign?

Neptuniumm

New Member
Hi everyone,

I am currently in the search for a ~100k $ personal loan to merge with my savings to send to my family in my home country to buy an apartment. My application got rejected by Wells Fargo and LightStream and I have just received a $90k - 3 years - 13.24% APR offer from Sofi. They sent a contract consisting of the 10 pages attached and I have read it thoroughly. I wanted to create this thread to ask for your opinions on a few points that I found suspicious. Here are my questions.

Page 2: In Section B, it says "When you (Sofi) receive my Application, you (Sofi) are not agreeing to lend me money. You have the right not to make a Loan or to lend an amount less than the Loan Amount Requested."

Do you find this statement suspicious? Reading this sentence I get the impression that once I sign this document, they will have the right to reduce the total amount of loan down to any number that they like. For example can they say "We have decided to give you $ 50k instead of $ 90k."? In such a case, the loan would be useless for me because it wouldn't cover my needs to buy an apartment in my home country.

Page 3: In Section F, Sofi is talking about a loan origination fee but they are not specifying the amount exactly. Do you think this is a suspicious thing? If I sign the agreement, do I run the risk of getting charged an unreasonable amount of origination fee?

All Pages: I read the document thoroughly and couldn't see any point where Sofi specifies the time frame that they will be depositing the money to me? Do you think this is also suspicious? Can it turn out to be the case that I sign the agreement and they do not deposit the money to me for months but they start charging me for the loan? My family in my home country is expecting to receive this money from me in two weeks and if I cannot get it to them by then, they might miss the apartment that they want.

Thank you very much for your time in advance The amount of the loan is quite high so is the stress of signing such a document so any input from you is much appreciated.

-Neptuniumm
 

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Hi everyone,

I am currently in the search for a ~100k $ personal loan to merge with my savings to send to my family in my home country to buy an apartment. My application got rejected by Wells Fargo and LightStream and I have just received a $90k - 3 years - 13.24% APR offer from Sofi. They sent a contract consisting of the 10 pages attached and I have read it thoroughly. I wanted to create this thread to ask for your opinions on a few points that I found suspicious. Here are my questions.

Page 2: In Section B, it says "When you (Sofi) receive my Application, you (Sofi) are not agreeing to lend me money. You have the right not to make a Loan or to lend an amount less than the Loan Amount Requested."

Do you find this statement suspicious? Reading this sentence I get the impression that once I sign this document, they will have the right to reduce the total amount of loan down to any number that they like. For example can they say "We have decided to give you $ 50k instead of $ 90k."? In such a case, the loan would be useless for me because it wouldn't cover my needs to buy an apartment in my home country.

Page 3: In Section F, Sofi is talking about a loan origination fee but they are not specifying the amount exactly. Do you think this is a suspicious thing? If I sign the agreement, do I run the risk of getting charged an unreasonable amount of origination fee?

All Pages: I read the document thoroughly and couldn't see any point where Sofi specifies the time frame that they will be depositing the money to me? Do you think this is also suspicious? Can it turn out to be the case that I sign the agreement and they do not deposit the money to me for months but they start charging me for the loan? My family in my home country is expecting to receive this money from me in two weeks and if I cannot get it to them by then, they might miss the apartment that they want.

Thank you very much for your time in advance The amount of the loan is quite high so is the stress of signing such a document so any input from you is much appreciated.

-Neptuniumm
If you have question on this loan you would need to take the contract to a local attorney for review. Contract review is beyond the scope of this site. I would have given you a link to your state bar association but you chose to not name your state as required by this site.
 
My 2 cents worth.

Page 2: In Section B, it says "When you (Sofi) receive my Application, you (Sofi) are not agreeing to lend me money. You have the right not to make a Loan or to lend an amount less than the Loan Amount Requested."

Do you find this statement suspicious?

No. That seems to be saying that you are only applying for the loan by signing the contract. The offer may have been made based on minimal information but you still have to qualify. It's like those credit card offers you get in the mail. Sign up and you might still end up getting denied or being given a lower credit limit.

Page 3: In Section F, Sofi is talking about a loan origination fee but they are not specifying the amount exactly. Do you think this is a suspicious thing?

No. The origination fee could be a percentage of the loan amount which has not been set yet.

If I sign the agreement, do I run the risk of getting charged an unreasonable amount of origination fee?

"Reasonable" is in the eye of the beholder. You should call up and ask about that.

I read the document thoroughly and couldn't see any point where Sofi specifies the time frame that they will be depositing the money to me? Do you think this is also suspicious?

No. That probably is flexible based on how long it takes to qualify you. Again, call up and ask about that.

Can it turn out to be the case that I sign the agreement and they do not deposit the money to me for months but they start charging me for the loan?

Unlikely. The payment clock should start running when the loan is funded. Again, call up and ask.

My family in my home country is expecting to receive this money from me in two weeks and if I cannot get it to them by then, they might miss the apartment that they want.

Yeah, that could happen.
 
Any change to the terms of the loan (length, amount, interest rate, etc.) would have to be presented via a corrected truth in lending disclosure as they have presented on page 1 of the document you linked.

The loan is made until funded.
 
Guns don't cause trouble.

People cause trouble.

People can cause a lot more trouble with a gun in their hands than they can without.

No gun has ever picked itself up and pulled its own trigger.

Nor has any nuclear weapon gone and exploded on its own. That doesn't mean that we ought to let everyone who wants to own and use nuclear weapons have one. Already too many crazies like North Korea's Kim and Russia's Putin have the power to use nuclear weapons, and that's bad enough.

Citizens have a right to own guns. And I wouldn't take that right away. But society has the right to impose some limits on that right, just as it does with every other right.
 
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