Tips for Faster Processing Of Your Bank Loans

Faster Processing Of Your Bank LoansAre you also among those facing a tough time getting your bank loan approved? With economic recession increasing at an alarming rate the bank lenders have made money lending policies more stringent. Thus, your application should be spotlessly perfect to avoid any doubts in the minds of the investors.

So, if you want lenders to review your application and grant it without creating any problems, then these guidelines should be kept in mind.

• Know your preference well: Before making a move to the bank with your application it is advisable to check all the loan options available online which are being offered by other rival companies. This would give you an idea of what kind of loan you are looking for, whether its terms and conditions are feasible for you, and time for repayment which should be as short as possible. If you are looking for some specific type of loans like an auto loan or mortgage loan then do a research work on all the deals available to get the best deal. Nowadays, you also keep getting many email notifications about several types of loans. However, one should be very careful to read its fine print properly before further proceeding with it.

• Question the bank for clarifications: Once you find the loan whose terms and conditions suit you best, you should directly get in touch with the bank officials to understand their requirements for a quick approval of the loan. As different banks have different criterions required for approval, so do not hesitate to make a prior appointment with the bank and do not forget to carry all your official documents for them to cross-check and verify. Get a clear idea about the necessary documentation requirement for the approval process so that you do not have to face any problem at the last moment.

• Know your limits: Tally your current credit scores with those required by the bank because most the lenders focus on your credit history before approving the loan. If there is any discrepancy found in that then your chances of a loan approval almost become nil.

• Checklist for required documents: Create a checklist of all the necessary documents required so as to avoid any discrepancy in the documentation process. Sometimes incomplete applications get rejected without getting reviewed, so make sure you submit all the documents.

• Get a clear idea about how things follow: Get to know how thing are processed after the submission of the application so that you know exactly when you would get a response.

Since getting approval for a loan is a very critical task, these above-mentioned tips would help you get approval for your loans more quickly.

The Different Requirements Of Getting A No Income Verification Loan

No Income Verification LoanA no-income verification loan’s approval depends on the creditworthiness of the borrower along with the value of the property. The lenders know that you, the borrower, cannot qualify for securing a traditional mortgage; however, they know it very well that you certainly have the ability to pay the interest on a note, which will bring them money. Because of this ability of yours, these moneylenders are able to provide you this specific loan.

And these lenders even know that if the loan is still due after one or two years, you will either replace it with a traditional mortgage (from a bank) or renew it. However, what will happen if you have a negative income, or a higher Debt-To-Income (DTI) ratio (because of some new additions in your investment portfolio), or excessive write-offs? Do not worry as despite such scenarios, you can get such financing options easily.

Getting the no-income verification mortgages

Also known as stated income loans, these financial products are the best alternative when an investor has a negative income, or has excessive write-offs, or has spiraling DTI ratios. For securing such mortgages, you will never have to furnish all those previous year’s bank statements and income tax returns.

The requirements

As long as you have a good credit history (600 FICO is the minimum requirement), you can get no-income loans easily (close to $ 2 million).

Apart from this, you will have to give up to 25 percent to 30 percent of purchase down payment.

The interest on this mortgage varies from one lender to another. This oscillation will completely depend on the number of docs you provide to the lender. (If you are furnishing all the docs that the lender may require giving you this specific mortgage, then the lender may even levy a low interest rate on the loan.)
The advantages of getting such loans

The process of getting your no-income verification loan approved is way faster than that of the traditional loan. In conventional loans, the key reason for the delay in loan funding is, many a time, related to the income verification.

This financial product implies that there is completely no need to display years of statements, to show tax returns, and to provide months of paystubs.

If you can afford giving monthly payments and 25-30 percent of down payment, getting this financial product will be your best chance to shape your commercial real estate investment dreams.
So once you are looking for a no income verification mortgage, it is best to know the information shared in this write-up. With this knowledge, you will be able to discuss your case more clearly with the representative of the institution that will lend you this mortgage type easily.

Collateral Loans Pros and Cons

Collateral LoansThese are also referred to as secured loans. When taking out a collateral loan there are many pros and cons, which a person should consider before taking out such a loan. There is no risk to the lender because if the borrower does not pay back the loan the lender has the collateral that the borrower used. Many times with a collateral loan you can get a lower interest rate and a longer period of time to repay the loan. Before applying for a loan figure out how much money you are going to need. You should avoid taking out excessive collateral loans because in the end you will paying back more money. To get an idea of how much you can borrow you should calculate your monthly expenses and monthly income and then decide after seeing how much you have left, how much of a monthly payment you can afford.

Next you will decide what you will offer as collateral because many times what you offer as collateral will help to determine what the rate will be for your loan. A collateral loan can be used to consolidate a debt, home improvements, vacation, or major purchase. When applying for this loan the loans that the bank or lender will give you against collateral will usually be percentage of the estimated market value. For example, if you are using a car that is worth twenty thousand dollars the lender would most likely offer you a collateral loan of seventeen thousand dollars, or approximately eighty-five percent of the value of your collateral.

Pros

• It is an easy loan to get and usually is quickly approved
• The borrower can usually borrow more money that they could with an unsecured loan, which is the type of loan that you would need a good credit score, steady employment, good income to get it.
• If you are turned down for an unsecured loan many times a person can get a secured loan.
• There is not a cap on how much a borrower can borrow.

Cons

• What the borrower used as collateral is at risk if they cannot pay the loan back in the time agreed upon.
• A collateral loan is not available to just anyone as you will need to own a vehicle, house, or another piece of property that can be used as collateral and if you do not have any of the three you cannot get this type of loan.

As you can see there are more pros than cons when considering a collateral loan but do make sure that you do not borrow more than you can pay back.

Find an Appropriate Hard Money Lender

Hard Money LenderFind out a hard money lender is not a tough work. The internet can help you most about it. The tricky part is finding out a hard money lender that has low rates, a lender in your local market and is experienced. Many lenders charge more than 15% so it is important to find out a perfect one.

There are great hard money lenders available, but they are not always very easy to find. There have many companies that call themselves hard money lenders and most do very small lending. Maximum lenders are also localised to one state or even one area where they understand the market. However, there have some bigger lending companies that work in many regions and have smaller rates that a typical lender may have.

How does It work?

These loans are not coming from banks. In this loan situation, a company borrows fund from investors and then lends that amount to other investors searching too but real estate at a higher rate. The investors who lend money to the lending company wants to see a good return because of the risk. The lender then has to charge the real estate investor a higher interest rate to make any fund. With a hard cash lender, you will find rates in the 14 to 18% range, along with they will charge from 2 to 5 points on the loan.

Why Investors Pay So Much?

The reason investors are showing interest to pay such high rates on this type of loan is that they have no other option. It is very difficult to get short-term financing from a traditional lending company like a bank, and that is what this loan is for. The loan program is very good for six months to 1 year, where bank lending may be good for around 30 years. Many lenders will also allow investor put less than 20% down payment on properties where banks will not.

How Find A Cheap Lender?

Many of hard money lenders will charge 15% or more, but still there are many lending companies offer affordable rates for debtors. The reason these companies can charge less to the real estate investors is that they are getting more money from larger investors who do not need as high of returns as the smaller individual investors. Many hard cash lenders have rates as low as 11% with 2 to 4 points. Getting bellow 12% with any lending company is going to be difficult. Below are hard money lenders that lend in many states and have good rates for hard loans.

Find A Local Lender

If you like to work with a local lender, you should be careful who you deal with. Referrals are the best option always to find a reputable partner. Here a few process to find some good hard fund lenders. At first, you should ask around at a local real estate investor meet up. Many times lenders will sponsor as well as speak at the meeting. You can ask your real estate agent or a lender if they know any lending company. There also have a chance they don’t know any lender, but it does not hurt you if you ask. You can also check online to find out a real estate investor. When you are searching online, be careful because there has many fraud lending companies are available in the market.

This loan program can be an excellent way to flip houses and expand your returns when flipping by using less of your fund. Hard fund can also be used to buy a rental asset and then be refinanced. Finding the right lender can be challenging work, and if you select the right one, it can cost your deal.