3 Factors that Affect Your Application for a Homeowner Loan

Getting a homeowner loan may be a bit more tedious compared to unsecured loan types, because of the involvement of the property. There are documents to submit, processes to go through, and a number of other things. UK Loan 247 aims to simplify the process as much as we can, but still, there are factors that are outside of our control when it comes to the application process.
Your Home Equity
Your home equity can be best defined as your share of ownership in your home. Essentially, it is the worth of your property after deducting the remaining mortgage balance from the fair market value of your home.
Obviously, the more time it had passed in making your mortgage payments, the more equity there is in your home. This amount can have a major impact on how much you can borrow against your property. The more equity your home has, the more likely it is for you to obtain the loan that you need. Not only that, but the higher your equity, the higher the amount you can borrow, and the lower interest rates you can possibly have.
Your Affordability
Another major factor that will affect the decision on your homeowner loan is your affordability. Affordability means so much more than just your basic monthly salary. It involves all your sources of income, as well as all of your monthly outgoings. The lender may also consider financial obligations that may come along the way while you’re making repayments, as well as your future income.
When taking out a secured loan, you are basically looking at years of repayment, because of the longer time you need to repay the pretty hefty sum involved with this line of credit. Therefore, there are more considerations than just your present financial situation.
Your Credit Rating
Your credit rating probably has the greatest impact when applying for a secured loan or any loan for that matter. You have to realize that securing credit is all about risks. The higher risk that you bring to the lender, the higher your interest rates will become.
Your credit rating is simply an overview of your past credit performances. For many lenders, it is the most realistic tool to gauge how the borrower will likely behave on this new loan. Thus, if you’ve had histories of late payments and defaults, the lender will most likely give you a high interest rate, or refuse your loan altogether.
We know how hard it is to obtain a loan when your credit has not been in good shape, but we are here to help. While we cannot guarantee acceptance, we can help you find lenders which actually specialize in lending to individuals just like yourself. If you have poor credit looking to secure a loan against your home, just visit our homepage to begin with the application process.