Tag Archives: approval
Homeownership Can Boost Your Approval Rate
Regardless of the loan type you are applying for, you can get a boost on your approval rate if you are a homeowner. Homeowners have better chances of getting approved for home loans, home equity loans but also for unsecured personal loans, student loans, car loans, business loans and many other loan types.
The reasons for this can be explained analyzing the effects that homeownership has on the loan terms and requirements for approval. There is a variable that is greatly modified by homeownership which has important incidences on all loan terms and requirements: the risk of default for the lender in the financial transaction.
Risk Of Default And Approval
The approval process is ruled by the lenders fear of default: The higher the risk of default, the lower the chances of getting approved. In the event of default, the lender is actually loosing his investment because there are little chances of recovering the money unless the lender has sufficient assets to compensate for the loses.
The risk of default and approval are thus, greatly related. If the applicant can provide any aid to reduce the risk of default, the lender will be significantly more comfortable at lending the money that the borrower needs. Thus, it is important to know which modifiers can reduce the risk of default and boost the chances of getting approved.
Consequences of Homeownership
Along these modifiers we can analyze various options: collateral, simple homeownership, down payments and a co-signer. Collateral provides the best form of guarantee as it is a particular asset that is used for security of a loan and the lender can take legal action of repossession in the event that the borrower defaults on the loan.
A down payment is useful for certain secured loans that already have collateral but the risk of default is still high. Then, the borrower offers a certain amount of money that has already been set aside by him, so as to reduce the amount of money needed to purchase the home or the car and thus, leaving the property with a higher amount of equity left. The property guaranteeing the loan is then worth more than the debt it is guaranteeing.
A co-signer is obliged to repay the loan along with the main applicant and thus provides an additional guarantee for repayment. This is also associated with homeownership. If both the applicant and the co-signer are homeowners, chances of getting approved are greater as the lender has additional properties to obtain repayment from in the event of default.
Finally, we have reached the modifier that can provide a great risk reduction without too many hassles. Simple homeownership provides a reduction on the risk involved in any financial transaction regardless if the property or properties are used as collateral for the loan. This is due to the fact that all of the applicants assets guarantee in a way the repayment of the loan. All the assets legally guarantee any debt that the owner may have and thats the reason why a co-signer who is also a homeowner provides an additional guarantee and lowers the risk even more: He does not only provide an additional income but also, an additional real estate guarantee or guarantees.
No Faxing Loans: Have Quick Cash without Faxing
When you decide about taking loan the first thing that hits your mind is to fax your documents to lender. However; before you start to fax your documents you have to collect and arrange them first. Some time it becomes hassle and very time consuming as you cannot even fulfill your urgent financial requirements. Also, many times whatever you fax to lenders it not reaches in complete form or print is not appropriate or readable. However; with the advent of No faxing loans, borrowers can get instant cash for their short term needs without having any such problems.
Today if you see internet then it has provided us an advanced technology that has given you an instant service to send your information anywhere and anytime within few seconds. Hence if you choose online mode for your application your application will get executed within few minutes and you get instant approval for these loans. If you need fast approval you need to fill online application form with some requisite details such as your employment status and your income detail. Also, you should have a regular source of income at least up to £1000. Beside these, you have to provide your bank account detail, so that after approval your loan amount will get transferred directly into your bank account.
As these loans a designed for urgent and small requirements hence you get instant approval within no minutes. If you choose these loans then you are authorized to borrow loan amount in the range of £80 – £750. You can repay the loan amount between 14- 31 days, after this period your loan amount will automatically deduct from your account, on your next payday.
Irrespective of your credit score and financial status anyone can apply for these loans as these loans are designed to fit in everyones budget due to its flexibility. With these loans people who have bad credit score get opportunity to maintain their credit scores that you can do once you repay your loan amount on time. No faxing loans provide an easy and online mode to get faxless funds to meet your urgent financial requirements, without any lengthy documents that save your time and effort.