Finding a Remedy against Lending Restrictions in a Professional & Elegant Way

admin | December 21, 2012

Loan (Photo credit: Philip Taylor PT)

Getting a loan application accepted is one of the most complicated and overwhelming processes in the world today. If five years ago everyone could get a loan with or without a positive credit, the lending institutions are stricter than always now. The conditions have been diversified a lot lately, even if both parts end up on the losing side – the banks and their potential customers. If the banks are no longer getting as many applications and requests as before, the customers must find other financial possibilities to get the money they need. However, the good news is that you can always find some back doors and solutions. As long as you take your time to do your homework and play by the new rules, there are no reasons wherefore you can fail.

The down payment

A large down payment is said to be a high financial effort in the beginning, but also to ensure a more facile endorsement over time. If you can pay more in the first phase, there are no reasons wherefore you should not do it. On the other hand, if your initial payment is limited, you must find the lending institutions with the lower requirements. It usually depends on the size of your loan. If you plan to get a new car or laptop, you may not be asked for a down payment. If you hope to get a new home, this is a must. The payment is given according to a preset percentage. The interesting part is that each lending institution will send an evaluator and if the final estimations do not coincide with the price you are asked for, you will obviously get less money, so the down payment is supposed to be a lot higher. This percentage usually varies between 5% and 35%.

Analyze the offers

Each lending institution has its own rules, regulations, terms and special offers, so the differences you will find from one bank to another can be huge. The change stays in the interest rates and any potential facilities. Demand a concise estimation of the loan and do not just judge by the ads you run into. Most ads underline the most significant benefits, but they can obviously not give out all the extra fees, rules or requirements. Discuss with each lending institution as if you actually planned to get the loan from it. You can make an informed and profitable decision in the long run only when you know every single factor in the process. Sometimes, the better deals are given in the short run. For instance, a smaller monthly payment will lead to a higher overall cost, which some customers might find very profitable, especially if their monthly income is limited.

The key is in your co-debtors

The maximum amount of money you can get is directly proportional with the household income. Most lending institutions have specific math rules and calculations when they decide how much you are entitled to get. If your income does not allow you to get the money you need, try to find an institution that will not refuse more co-debtors. Since this rule chases away more and more potential customers, a lot of banks have adopted a more permissive attitude. Most commonly, the co-debtors are supposed to be some of your relatives. In fact, it is hard to believe that you can actually find someone else willing to guarantee for your loan.

Although getting a loan might seem like a bureaucratic procedure that can psychically exhaust you, a little education can open a lot of doors and will enlighten you on what procedures to follow. Aside from these three helpful ideas, there are a few other tips you should definitely consider:

Find a bank willing to guarantee for the pre-approval special offers or promotions. Since processing your application can take up to a few weeks, it is important to make sure that nothing changes meanwhile.
When dealing with the respective seller, the down payment is supposed to be insignificant. There are plenty of unexpected surprises that may arise and most of them are very unpleasant. If the bank does not approve your application, you risk losing the initial payment.

Author’s bio

Devin is an expert in financial and bureaucratic procedures, so he has the knowledge and experience to share some of the tricks that can get you on the winning side when dealing with a lending institution. His write-up reveals the most appropriate unsecured loans remedy on today’s market.