Prerequisite For Applying For Loan

Prerequisite For Applying For Loan

Prerequisite For Applying For Loan
The various types of​ loans are students loan,​ refinancing,​ home loans etc .​
In case of​ students loan the​ prerequisite or​ instructions while applying for loan is​ that the​ student should provide the​ student aid report,​ complete entrance counseling and given the​ consent form for applying loan .​
It is​ important for a​ student to​ have completed the​ entrance counseling to​ enter into the​ college and while applying for loan facilities.
In case of​ home loans or​ other types of​ loans the​ various requisite is​ that the​ borrower must have the​ following documents in​ hand while applying for the​ same .​
They are as​ follows: a​ .​
Credit authorization reports i.e .​
the borrower must have a​ good credit rating b .​
should have filed tax returns and have copies of​ the​ same .​
c .​
If the​ individual has a​ rental property then the​ rental agreement must be produced .​
d .​
In order the​ quicken the​ process of​ loan application the​ individual can provide his bank statements e .​
In case the​ borrower is​ going for refinance facility he must aptly state what he intends to​ do with the​ money .​
f .​
If the​ borrower is​ divorced then the​ divorce decree must be provided such that the​ liability of​ the​ borrower is​ known .​
g .​
If the​ borrower is​ not a​ citizen,​ then proof of​ his green card must be given .​
All these information helps the​ organization or​ the​ lender to​ judge the​ creditability of​ the​ borrower and if​ he would be able to​ repay the​ loan within the​ said time,​ if​ not what is​ the​ security that can be used to​ retrieve the​ same.
While applying for the​ various loan facilities the​ forms contain various questions like details on​ the​ borrowing amount,​ repayment period,​ payment protection,​ insurance facilities,​ whether it​ is​ a​ single or​ joint loan application,​ current value of​ the​ property,​ outstanding on​ the​ mortgage,​ monthly mortgage payment,​ annual salary of​ the​ household .​
These questions also help the​ lender to​ know more about the​ borrower and his credit worthiness .​

These instructions are strictly adhered to​ in​ case of​ banks and other financial institutions but when one or​ more of​ the​ requisites are faulty then the​ institutions refuse to​ lend,​ this is​ where the​ private lenders and the​ brokers come in​ .​
They offer loans from various sources at​ a​ higher rate and security like property or​ house .​
These private lenders and brokers take a​ risk but they charge a​ higher fee for the​ same.

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