5 Keys That Will Help Us Understand Secured Loans

 

In the market we find credit products with which we can access the financing we are looking for. An example is secured loans, which we can apply for if we need money and we have a home without charges or in their last years of mortgage.

If we comply with this condition, we have a new way with more flexible requirements and to which we can resort whether we appear in a file of defaulters or if we want to undertake. In this article we show five characteristics with which a credit with a mortgage guarantee.

The importance of housing in secured loans

The importance of housing in secured loans

A property owned is the payment guarantee that credit companies take in exchange for lending us the money we need for purposes such as reuniting our debts or starting a business. In return, we may benefit from some advantages over other credit products on the market.

1. It is essential to have a home ownership

The most important requirement that we must meet to apply for a mortgage loan is that we have a home without charges or with 80% paid. In this case, we have an alternative to personal loans to obtain financing.

If we meet this condition, we can choose a term to return the money that we have requested between 6 months and 20 years. In addition, we will not have to pay an additional cost for opening commission.

2. Its maximum amount will vary depending on the appraised value of our home

Before applying for secured loans, the company will carry out an appraisal of the home. Unlike other credit products, at most we can request 40% of the property’s valuation. Therefore, it will depend on both the type of housing and the amount we need, that we have the money we need.

Greater flexibility when contracting a secured loan

Greater flexibility when contracting a secured loan

One of its advantages is that, when applying for a home equity loan, the requirements to obtain the financing we need are usually more flexible than in other credit products. For example, they are not going to ask us for a very high income. This is because, in other credits, having a good salary is the guarantee of payment for the lender. Instead, we are providing a home, the value of which is much higher.

A good option for individuals with the intention of undertaking

A good option for individuals with the intention of undertaking

A home equity loan can also be very useful if we have a business idea and are looking for financing to put it into practice. If we have a home we can access the credit we need to take the first steps setting up our company.

It is essential to choose well both the amount we need and the period in which we are going to repay the capital according to our financial capacity. If we use them in this way, secured loans can be a good alternative to obtain financing with good conditions whenever we have a home.

What is the documents needed to apply for a credit?

For some banks, the minimum age to request a credit or loan may vary according to their policies. Most banks agree that their applicants must be at least 18 years old. While those who grant mortgage loans usually demand the compulsory age of 25 years because they consider that a younger person may not have guarantees of the contracted return.

Apply for a credit or a loan when you are too young can be a problem if you do not have money security or financial stability to pay it off. But it also happens that when you require a more adult loan they could deny it if you exceed a certain number of years. In short, the perfect age does not exist, what does exist is the need to have proper documentation.

Documentation required to obtain a financial product

Documentation required to obtain a financial product

 

The documentation or requirements to be fulfilled to grant the credit or loan may vary depending on the bank or financial institution in which you request it, for these reasons we list the most common requirements when requesting a loan and the minimum and maximum age established by them .

Payroll receipts

Payroll receipts

For every loan you must check stable income. In personal loans and credit cards they request your payroll receipts from three previous months. While auto and mortgage loans generally ask that you take a year of your current job, so it is necessary to check it.

Your monthly income may vary depending on the credit you require, but they range from 5,000 dollars to 15,000 dollars. Above these amounts they may approve said service.

Good track record

When you apply for your first loan, you may not have a credit history and for these reasons you will not be granted any type of credit product. For these reasons you must make a score before. exist cards for university students who report to the Bureau, also the telephone plans classify your behavior as good or bad debtor.

If you already have more than one credit card, what banks really verify is your behavior with your debts. That is, if you do not have arrears or if you have always paid on time. A good score in the Bureau is derived from your movements in your history, how many credits you have requested, at what point you paid them, etc.

Nationality

Nationality

Some banks request that the subject of the loan be a citizen; or that legal residence in the country can be proven. This is requested for security, because fraud can occur from a person outside the country or who is only temporarily in our territory.

Age

The age is variable depending on the credit or loan that you request. In case of being a personal loan or a credit card, the age can vary from a minimum of 18 years to a maximum of 69 years.

While when you want a car or home loan, the age may change depending on the bank, but for the most part they agree that they must be people with a credit history that guarantees their ability to pay. For these reasons, entities have a minimum age of 25 years and a maximum of 70 years in case you want to purchase any of the two mentioned products.

Physical or digital documentation

Physical or digital documentation

Once you have complied with these requirements, you must grant all the papers to your bank or financial institution that you request, a physical or digital copy will facilitate the execution process. Do not forget to have on hand some official documents such as identification, curp, proof of address, etc.

Now that we know the necessary requirements to acquire any of these services, take into account the moment in which your financial life is and evaluate if you have the necessary resources to commit to a credit product.

What is the perfect age to get credit?

What is the perfect age to get credit?

Not so young, not so old. The perfect age to apply for your first credit card or personal loan may be 20 years old, the best thing to do first is to have some financial solvency so that you can afford these products and have a good Bureau.

Regarding automotive, mortgage and business loans: the minimum age is 25 years and older. By then you will have already created a considerable score and will be able to request a loan for a house or car. It is recommended to have a stable financial life; no debt and continuous income for your financing to be granted.

Are you already at that age? Well, we recommend that you comply with all the stated requirements. If you have already applied for a loan or credit and you are in debt, it is best to resort to experts in solving debts.

3 Advantages of Home Equity Loans

 

It is not usually the first possibility that comes to mind when we seek financing and less talk about it. Traditional loans, fast loans, and mini-credits are much better known. However, on some occasions it appears as an ideal alternative, especially for those people who request a high amount, but their income is not excessively high.

These are home equity loans, and they have three characteristics that make them a more than interesting option. In this article we review them and take a look at other key aspects of this financing.

What makes home equity loans special?

What makes home equity loans special?

The first thing that we should know about this type of credit is that they require owning a house, an apartment or a premises, since it will be what acts as a guarantee of payment. If it is not our case, we are automatically discarded to get the money. The fact that a property is involved is what allows access to high amounts. The problem, on the other hand, is that in the event of default the lender would keep the house or apartment owned to collect the outstanding debt.

For this reason, we always recommend that we make sure to request a home equity loan when we are certain that we will be able to meet the resulting fees. Otherwise, it is better not to request it, since the consequences can be very negative. At the same time, we also highlight the need to resort to this solution when the amount we require is high. There is no point in putting the ownership of our house at stake for a relatively low amount.

3 keys to these loans

3 keys to these loans

Already explained some precautions that must be taken into account with home equity loans, we can now go to the good part and review what are the three great advantages of this type of financing:

  1. Accept: it is not the ideal situation, but there are various events that can lead us to be registered in delinquent files. In this type of loan, this circumstance is not taken into account, while in many cases it automatically eliminates the option of obtaining credit.
  2. Diversity of purposes: its use is very varied. We can use it to refinance, to reform our home or to accept an inheritance, among others. The great variety of amounts it covers facilitate this possibility.
  3. An extra opportunity: any bank or entity will ask us for a minimum income to access financing. Sometimes that required amount can be too high. Luckily, with home equity loans, lenders are somewhat more flexible because the home is acting as collateral for payment.

With this private capital company we can request from 5,000 to 300,000 dollars (or 50% of the value of the property) to return them within a period of between 6 months and 20 years. In addition, it has a very competitive minimum interest of 8.95% TIN and allows you to have the requested money in just one week.