Secured Loans Made Easy Almost everyone will need to apply for loans at various stages of life. Some, for example, will apply for a loan when buying a big-ticket item, such as a car or a house. Others will apply for loans to fund a college education. You may also borrow money to make it […]
Secured Loans Made Easy
Almost everyone will need to apply for loans at various stages of life. Some, for example, will apply for a loan when buying a big-ticket item, such as a car or a house. Others will apply for loans to fund a college education. You may also borrow money to make it easier to pay for everything from new appliances to a great vacation abroad. Some people will even borrow extra money to make ends meet until the next paycheck arrives, and a short-term loan is most commonly used for this need. If you need cash now, you may be exploring the options to determine what the best course of action is. As you explore the options, the first difference you will notice in loan programs is that there are both unsecured and secured loans. By learning more about the differences between these two options, you can make a better decision for your current needs.
What Is a Secured Loan?
Applying for secured loans online is one option available to you, and you should understand the differences between a secured and unsecured loan before you move forward with the completion of a loan application. Online secured loans require you to pledge collateral when applying, and the collateral is typically an item of significant value, such as a car or a house. The loan may be approved based on a range of factors that include your credit scores, your ability to repay the loan and the equity available in the collateral. An unsecured loan, on the other hand, does not use collateral, and the loan is approved based on factors only related to your personal financial situation. Because of the lack of collateral in an unsecured loan, you typically will have higher rates and shorter terms with an unsecured loan.
The Benefits of a Secured Loan
Applying for online secured loans provides you with a number of benefits, but you do need to have collateral available to complete the loan application process. Keep in mind that you may already own the collateral, and if this is the case, you should have significant equity available in the asset. You may also purchase the asset with the loan, such as when applying for a car loan when purchasing a new vehicle. Regardless of whether you already own the asset or you plan to purchase the asset with the new loan, you can enjoy a number of benefits through the application of online collateral loans. For example, you may enjoy lower rates and fees, a higher loan amount and easier underwriting with less emphasis on your personal financial situation when you pledge an asset. In addition, the lender may not require you to have excellent credit scores.
How a Secured Loan Can Give You the Money You Need
If you are thinking about applying for collateral loans online today, you may be wondering how these loans can give you the money you need. If you are purchasing an asset, such as a house or a car, with the funds, the loan proceeds will typically be transferred directly to the seller. On the other hand, if you already own the asset, such as may be the case when applying for online car title loans, the lender typically will either mail you a check or deposit the funds directly into your bank account for immediate use.
Different Types of Secured Loans
If you have decided that applying for secured loans online is the right move for you to make, the next step to take is to understand the different types of online secured loans available. There are two main options available, and these are a home mortgage loan and a car title loan. With the purchase of a home or car, you may need to come up with a sizable down payment. With the refinance of a home or a car, you may need to have significant equity available in these assets, or they may even need to be owned free and clear.
What You Need When Applying For a Mortgage
One of the most common types of collateral loans online is a mortgage, and you may be wondering what it takes to apply for a mortgage. This is often one of the most difficult types of loans to obtain, and there is good reason for this. The property typically must pass through a property inspection and an appraisal, and you may also need to obtain a survey, a pest inspection, and other third party reports. In addition, the lender may ask to review everything from tax returns and bank statements to pay stubs, employment verification and more. The entire loan process may easily take 30 to 60 days, if not longer in some cases. You typically will apply for a mortgage through a national or local bank, but you can also apply for a mortgage through a specialized mortgage company.
What You need to Know About Online Car Title Loans
The application for car title loans online, on the other hand, can typically be completed within a few days or less. With these types of online collateral loans, you will need to provide information about the make and model of your car as well as current loan information, if any. The car title loan typically will pay off any existing loans you have on the car, and this will be the only auto loan you are responsible for. Income information, such as pay stubs, make also be reviewed, but you typically will not need to order expensive third party reports, such as an appraisal. When looking for a great lender to work with for the application of your car title loan, TitleLoansOnline.com is an excellent option to consider. This lender offers flexible loan terms, great rates and an easy application and underwriting process.
The quest to obtain additional cash for larger or smaller needs can seem frustrating, and the first step to take is to understand more about the different options available to you. Secured loans are just one of the options available, but it may be ideal if you have collateral available or if you plan to purchase new collateral with the loan proceeds. Carefully consider the differences between secured and unsecured loans as well as car title loans and mortgages to determine the best solutions available for your needs.