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Direct PLUS Loans (Parent & Graduate)

Direct PLUS Loans (Parent & Graduate)

Direct PLUS Loans are part of the federal Direct Loan Program. Unlike most other federal student loans, PLUS Loans are not awarded when you apply for aid. Graduate/professional students and parents of undergraduates apply separately for the PLUS .if they need additional funds to cover college costs.Finding the right balance of access to college and manageable debt is an exercise that many families practice right around this time of year – when the tuition bill shows up. Even a great financial aid package can fall significantly short of the total bill, which means it’s time for some tough decisions.Earlier this month, the Department of Education issued new, draft rules that, if adopted, will change the eligibility criteria for both graduate and Parent Direct PLUS loans.

The Student Loan Ranger attended the meetings where the department worked with members of the financial aid and consumer advocate communities to develop a policy that both maintains access to higher education and helps protect borrowers from taking on more than they can handle.This week’s blog looks at some of the options available for parents of undergraduate students and some tips to ensure smart choices.After applying and being approved for a Direct PLUS Loan, the award will appear on your financial aid Award Notice. Borrowers must complete the Direct Loan Program requirements listed on this page in order to receive loan funds. See the appropriate links for other details, including how to apply for a Direct PLUS Loan.

ABOUT THE PLUS LOAN:-The Direct PLUS Loan is unsubsidized, so interest accrues while the student is enrolled at least half-time and during deferment periods. Eligibility is not based on financial need, and graduate students and parents of undergraduates may borrow up to the amount of the student’s Cost of Attendance, minus any other financial assistance a student receives.

The Direct PLUS Loan may be of particular interest to students and parents who:
   -are not eligible for other types of financial aid
   -have unusual costs above the standard student expense budgets
   -have remaining financial need after other forms of financial aid have been awarded, or
   -wish to borrow all or part of their Expected Family Contribution

PLUS Loans offer advantages compared to private education loans, including the stability of federal funding, a fixed interest rate, and repayment and deferment options. See the Eligibility, Loan Terms, and Requirements section below and the Comparing Supplemental Loans page for details.

ELIGIBILITY, LOAN TERMS, AND REQUIREMENTS:-Students (or their parents) must submit a Free Application for Federal Student Aid (FAFSA) when applying for a PLUS or Grad PLUS Loan. Borrowers must have an acceptable credit history or a loan endorser with an acceptable credit history. Families with adverse credit may sometimes borrow under PLUS if they can document extenuating circumstances.

Key information about PLUS:-Because credit reports are only valid for a limited time and we process PLUS Loan applications in July, we wait until early April to accept PLUS applications so that only one credit check is required.We will assume that your application is for the Fall/Winter terms. If you want the loan for one term only, advise us as soon as possible. We begin sending PLUS applications to the federal processor in early July. Eligibility is determined when your application is processed in July.Contact our office if you require a paper PLUS Loan application .

HOW TO APPLY: PARENTS OF UNDERGRADUATES:-In mid-April or later Sign in and select “Apply for a PLUS Loan” under the Parent Borrower section using your U.S. Department of Education FSA ID.  If you need an FSA ID. Do not use your student’s FSAID.Follow the steps to complete the application and credit check. In the School Name section, be sure to select University of Michigan-Ann Arbor.The results of your credit check will be available immediately. If your credit is approved, you will be given instructions for completing a PLUS Loan Master Promissory Note. If your credit is not approved, you will have the option to obtain an endorser, appeal the credit decision or not pursue the loan.If you and/or your student are eligible non-U.S. citizens, you must also submit a copy of your U.S. Citizenship and Immigration Services document to the Office of Financial Aid to verify your current citizenship status.

HOW TO APPLY: GRADUATE AND PROFESSIONAL STUDENTS:-Complete a Free Application for Federal Student Aid (FAFSA), if you have not already done so.In mid-April or later, Sign in and select “Apply for a PLUS Loan” under the Graduate/Professional Students section using your U.S. Department of Education FSA ID.  If you need an FSA ID, Follow the steps to complete the application and credit check. In the School Name section, be sure to select University of Michigan-Ann Arbor.The results of your credit check will be available immediately. If your credit is approved, you will be given instructions for completing a PLUS Loan Master Promissory Note, if you have not already completed one. If your credit is not approved, you will have the option to obtain an endorser, appeal the credit decision or not pursue the loan.If you are borrowing through the PLUS Program for the first time, you must also complete Direct Loan Entrance .

COMPLETING YOUR LOAN REQUIREMENTS:-If you are a Direct PLUS Loan borrower, you will be required to complete three Direct Loan Program requirements sign a master promissory note, complete entrance counseling and complete exit counseling.
Master Promissory Notes:-Parents and students borrowing for the first time through the Direct Loan Program must complete a Direct Loan Master Promissory Note (or MPN) to receive their loan funds. The MPN authorizes U-M to credit the Direct Loan funds to the U-M student’s account. Once you complete the MPN, you will not have to complete another Direct Loan MPN for 10 years. If you have accepted other federal loans (e.g., Perkins, Health Professions, or Nursing Loans), you will need separate promissory notes for those loans. The Office of Financial Aid will notify you of how to complete them. Visit this page for details about completing your MPN.If you prefer, you may complete a paper MPN, but there are more steps involved before approval and your loans could be delayed. To complete a paper MPN, ; select “Complete MPN” to complete the MPN electronically or “Print MPN” to print, complete and mail a paper MPN to our office.
Entrance and Exit Counseling:-Entrance Counseling: If you are a graduate student PLUS borrower, you must complete Direct Loan Entrance Counseling on the U.S. Department of Education’s .This interactive counseling session and quiz helps students develop budgets for managing educational expenses and also understand their loan responsibilities. You must complete the counseling before your loan funds can be disbursed to you. Parent PLUS borrowers are not required to complete entrance counseling.

Exit Counseling:- This is required for Direct Loan student borrowers who are graduating or dropping below half-time enrollment. This counseling session helps borrowers understand their rights and responsibilities in repayment and helps them choose a repayment plan. You must use your Department of Education FSA ID to access this counseling session. To complete the Exit Counseling session. Click the “Complete Counseling” link and follow the link to “Exit Counseling” to begin.

RECEIVING YOUR LOAN FUNDS:-You must sign all of your loan documents and students must be enrolled at least half-time to receive your loan funds.  See Disbursement of Your Aid Funds for information about how your loan will be paid to you. Each time you borrow through the Direct Loan program, you will automatically receive your loan funds unless you decline them.

ADVERSE CREDIT HISTORY:-Federal PLUS loans are credit based. If it is determined that you have an adverse credit history, you may still quality for a Direct PLUS Loan. Follow these instructions:
   -find an endorser with good credit (not the student for which the loan is being borrowed) or
   -document extenuating circumstances to the U.S. Department of Education Office of Federal Student Aid. Visit studentloans.gov and select “Parent Borrowers” where you will find a link to “Document Extenuating Circumstances.” Review does not guarantee approval; Federal Student Aid will determine your eligibility based on information provided.

In both cases, the parent will need to complete online PLUS Counseling.If a parent is unable to secure a PLUS loan for a dependent undergraduate, the student is eligible for additional unsubsidized loans to help with education costs. This increase is not available if any parent passes the credit check or an endorser is approved. The student should contact our office for assistance.

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Federal Direct Stafford Loan

Federal Direct Stafford Loan

Stafford loans are fixed-rate loans for undergraduate and graduate students attending college at least half time. Provided under a federal government program, Stafford loans provide an excellent educational funding resource for US citizens and permanent residents. Because the program is controlled by the US federal government, interest rates can be very competitive – as low as 5.6% currently for undergraduates. Stafford loans can be subsidized or unsubsidized, based on the student’s financial need. Subsidized Stafford loans have a lower maximum limit than unsubsidized loans but the government pays the interest rate while the student is in school.A Stafford Loan is a student loan offered to eligible students enrolled in accredited American institutions of higher education to help finance their education. The terms of the loans are described in Title IV of the Higher Education Act of 1965 (with subsequent amendments), which guarantees repayment to the lender if a student defaults.In 1988, Congress renamed the Federal Guaranteed Student Loan program the Robert T. Stafford Student Loan program, in honor of U.S. Senator Robert Stafford, a Republican from Vermont, for his work on higher education.Because the loans are guaranteed by the full faith of the US government, they are offered at a lower interest rate than the borrower would otherwise be able to get for a private loan. On the other hand, there are strict eligibility requirements and borrowing limits on Stafford Loans.Students applying for a Stafford Loan or other federal financial aid must first complete a FAFSA. Stafford Loans are available to students directly from the United States Department of Education through the Federal Direct Student Loan Program (FDSLP, also known as Direct).No principal payments are expected on the loan while the student is in school enrolled at least half-time, referred to as in-school deferment. Deferment of repayment continues for six months after the student leaves school by graduating, dropping below half-time enrollment, or withdrawing, referred to as the grace period.Stafford Loans are available both as subsidized and unsubsidized loans. Subsidized loans are offered to students based on demonstrated financial need. (See Expected Family Contribution.) The interest on subsidized loans is paid by the federal government while the student is in school and during authorized deferment. For unsubsidized Stafford Loans, students are responsible for all of the interest that accrues while the student is enrolled in school. The interest may be deferred throughout enrollment. Unpaid interest that is deferred until after graduation is capitalized.The Budget Control Act of 2011 eliminated subsidized Stafford loans for graduate and professional students effective July 1, 2012.Unsubsidized Stafford loans are still available to these students.

Direct Subsidized Loans:-Direct Subsidized loans have more favorable terms to help students with financial need, including:
   -Direct Subsidized Loans are available to undergraduate students who have financial need.
   -The student’s school determines the amount they can borrow, and that amount cannot exceed the student’s financial need.
   -The U.S. Department of Education pays the interest on a Direct Subsidized Loan:
        -while you are in school at least half-time;
        -for the first six months after you leave school (known as a grace period); and
        -during a period of deferment (a postponement of loan payments).

Direct Unsubsidized Loans:-Direct Unsubsidized Loans are available to both undergraduate and graduate students, including:
    -There is no requirement to demonstrate financial need.
    -The student’s school determines the amount the student can borrow based on the student’s cost of attendance and other      financial aid he or she receives.
    -The student is responsible for paying interest on a Direct Unsubsidized Loan during all periods.
    -If the student decides not to pay the interest while he or she is in school and during grace periods and deferment or      forbearance periods, his or her interest will accumulate and be added to the principal amount of your loan.

Eligibility for Direct Stafford Loans:-In order to receive either a Direct Subsidized Loan or Direct Unsubsidized Loan, you will need to be enrolled at least half-time in a school that participates in the Direct Loan Program. Generally speaking, you must also be enrolled in a program that will lead to a degree or certificate awarded by the school. You school will determine the type of loan(s), if any, and the loan amount you are eligible to receive each academic year.There are limits on the amount in both subsidized and unsubsidized loans that you are eligible to receive each academic year (annual loan limits) and the total amounts that you are allowed to borrow for undergraduate and graduate study (aggregate loan limits). The loan amount you are eligible to receive each academic year may be less than the annual loan limit. These limits vary depending on:
    -What year you are in school
    -Whether you are a dependent or independent student

Applying for a Stafford Loan:-To apply for a Stafford Loan, you first must complete the Free Application for Federal Student Aid (FAFSA) or Renewal FAFSA. After the FAFSA is processed, your school will review the results and you will receive an “Award Letter” informing you about your loan eligibility. You may then apply for the Federal Stafford loan.

Repaying the Stafford Loan:-You will have a six month grace period after you graduate, leave school, or drop below half-time enrollment before you are required to begin repayment on your loan. You will receive repayment information from your loan servicer during this period, and you’ll be notified of your first payment due date. Payments are generally due monthly.

How to Apply:-Step 1 of 3: Complete the FAFSA
Step 2 of 3: Complete Entrance Counseling and the Master Promissory Note Once signed in, select “Complete Counseling” then select “Start” under the “Entrance Counseling” header and follow the instructions by selecting the counseling specific to the borrower’s degree classification (undergraduate or graduate student) at the bottom of the page Once counseling is completed, select “Complete MPN” from the menu on the left side of the page. Select “Subsidized/Unsubsidized” and follow instructions
Step 3 of 3:Accept the loans you wish to borrow via AccessPlus

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Student Loans In The United States

Student Loans In The United States

Student loans in the United States are a form of financial aid used to help more students access higher education. Student loan debt has been growing rapidly since 2006, rising to nearly $1.4 trillion by late 2016, roughly 7.5% GDP. Approximately 43 million have student loans, with an average balance of $30,000. Loans usually must be repaid, in contrast to other forms of financial aid such as scholarships, which never have to be repaid, and grants, which only rarely have to be repaid. Research indicates the increased usage of student loans has been a significant factor in college cost increases.

Types of Student Loans:-When you are exploring ways to pay for college, career, or technical schools, you may consider taking out a student loan—money you borrow to help you cover your education expenses and that you must pay back with interest.Student loans originate from the federal government (called “federal student loans”) or from private sources, such as a bank, credit union, state agency, or school. Learn the differences between federal and private loans before considering a loan.

Federal Student Loans:-If you need to borrow money to pay for college or career school, start with the more affordable federal student loan:

Types of Federal Student Loan Programs :- The William D. Ford Federal Direct Loan (Direct Loan) Program offers four types of Direct Loans:    

Direct Subsidized Loans are made to eligible undergraduate students based on financial need.
Direct Unsubsidized Loans are made to eligible undergraduate, graduate, and professional students, and are not based on financial need.
Direct PLUS Loans are made to graduate or professional students and parents of dependent undergraduate students.
-Direct Consolidation Loans allow you to combine all of your eligible federal student loans into a single loan with a single loan servicer.

The Federal Perkins Loan Program is administered through the schools, and awarded to undergraduates and graduate students with exceptional financial need. If you are eligible, you should take this loan first.

Eligibility:-You must be enrolled at a school that participates in the school loan program, and meet the general eligibility requirements.

How to apply:-Complete the Free Application for Federal Student Aid or FAFSA. Watch this video to learn more about what happens after submitting your FAFSA.

Private Student Loans:-Before taking a private loan, make sure you need it. These loans generally are not as affordable as federal student loans, and offer little repayment flexibility. Read these tips before getting a  private loan.

International Student Loans:-You should always carefully evaluate how much money you will need to study in the USA. Then you will need to research and apply for scholarships, financial aid from your school, and find money from any other source, including family funds. After exhausting these avenues, most international students still have a funding gap, and that’s where international student loans come in.

What is an International Student Loan:-Federal student loans are popular with US students studying in the US, but they are not available to international students. Instead, international students are eligible for international student loans, specialized private education loans available to international students studying in the US.International Student Loans are now a very realistic way to finance your education in the US. Loans are very flexible, and can offer loan amounts high enough to pay for your entire education, but with extended repayment terms and reasonable interest rates, so you can afford the repayment after you graduate.

Co-Signers:-All international students applying for loans must have a US co-signer in order to apply. A co-signer is legally obligated to repay the loan if the borrower fails to pay. The co-signer must be a permanent US resident with good credit who has lived in the US for the past two years. The co-signer is often a close friend or relative who can assist in getting credit, since most international students cannot receive credit on their own.

Interest:-Interest is the amount charged by the lender in addition to the amount of money that you borrowed. The interest rate is calculated based on an index plus a margin that will add an additional percentage interest rate depending on your co-signer’s creditworthiness. The two most common indexes used for international students are the Prime Rate and LIBOR Rate.

 –Prime Interest Rate – This index is determined by the federal funds rate which is set by the US Federal Reserve.
 LIBOR – The LIBOR (London Interbank Offered Rate) is based on the British Bankers’ Association and is used on the London interbank market. The rate is an average of the world’s most creditworthy bank’s interbank deposit rates for overnight and one year terms.

When evaluating the loan, the lender will clarify which index the plan uses. Then, there will be an additional margin that will be added based on the borrower’s individual criteria, including the co-signer’s credit history. Based on their creditworthiness, an additional interest rate will be added to the index. This will be the total interest you owe. When your application is approved, your specific margin will be disclosed to you, at which point you can accept or refuse the loan.

Repayment:-Repayment will vary depending on the loan option you choose. Since most international students are not able to work while they study in the US, repayment must be considered as an extremely important feature in your loan. You will need to consider how much the monthly payments will be, when payments will begin, and how long you will be able to defer paying back the loan. The repayment period generally ranges from 10-25 years, but the larger the loan, the longer the repayment period. The standard repayment plan options are:

Full Deferral – Students are able to defer payment until 6 months after graduation as long as full-time status is maintained. Students can defer payments for a maximum of four years, which is the typical length of a degree.
Interest Only – International students only pay the interest while in school, up to four consecutive years, and can defer the principal until 45 days after graduation, or when the student drops their course load to part-time.
Immediate Repayment – Payments on both interest and principal are due immediately once the loan has been dispersed.

Frequently Asking Questions:-

Who is eligible to apply for international student loans?
Students who are not US citizens or non-citizen permanent residents and who are attending an eligible US college or university may apply for international student loans.
What can international student loans be used for?
International student loans can be used for education-related expenses such as tuition, books, fees, insurance, and room and board.
What is the maximum loan amount I can apply for?

You can apply for up to the total cost of education, minus other aid, as determined by your school. In order to determine your maximum loan amount, you will need to contact your school’s financial aid office. After you apply and receive credit approval for you and your co-signer, your school must certify the amount of the loan.

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Payday loans in the United States America

Payday loans in the United States America

A payday loan (also called a payday advance, salary loan, payroll loan, small dollar loan, short term, or cash advance loan) is a small, short-term unsecured loan, “regardless of whether repayment of loans is linked to a borrower’s payday.The loans are also sometimes referred to as “cash advances,” though that term can also refer to cash provided against a prearranged line of credit such as a credit card. Payday advance loans rely on the consumer having previous payroll and employment records. Legislation regarding payday loans varies widely between different countries and, within the United States, between different states.

To prevent usury (unreasonable and excessive rates of interest), some jurisdictions limit the annual percentage rate that any lender, including payday lenders, can charge. Some jurisdictions outlaw payday lending entirely, and some have very few restrictions on payday lenders. In the United States, the rates of these loans were formerly restricted in most states by the Uniform Small Loan Laws (USLL),with 36%-40% APR generally the norm.Beginning in the 1980s and 1990s, storefront payday loan businesses began to spring up across the country and quickly became commonplace. Today, there are approximately 20,000 storefront lenders,1 an average of 6.3 payday stores for every 100,000 people.2 By comparison, in 2012, there were 14,157 McDonald’s restaurants in the United States.3 Additionally, payday loans are increasingly offered online. The growth and success of the industry shows that payday loans are in demand and fulfill a need for many people.Payday lenders, a type of alternative financial service providers, tend to be concentrated in locations with higher-than-average poverty rates, lower income levels, more single parents, and some minority groups.4 For example, a 2013 study in California found more payday loan stores located in areas with higher percentages of blacks and Latinos and in areas with high poverty rates and lower levels of educational attainment.5 This essay provides an overview of payday loans, borrower characteristics and habits, and regulations.

The Future of Payday Loans in America:-Most people are aware that payday loans aren’t the most financially sound solution for taking care of everyday money problems, but that doesn’t stop millions of Americans from using these services on a daily basis. The numbers are almost unbelievable, as Alabama recently found out when its Banking Department set out to create a statewide database that would collection the necessary information to prevent borrowers from taking more than $500 in payday loans at a time. The information collection began in August, and 10 weeks later the results came in — and they were deeply disturbing. In that short amount of time, Alabama residents took out 462,209 loans (approximately 46,000 loans per week) to the tune of $146 million, and are predicted to borrow a total of 2.4 million loans in the next year if those numbers continue.While the numbers are certainly surprising, Alabama is above average when it comes to payday loan borrowing — other states with similar databases, such as South Carolina, have reported lower numbers (South Carolina residents took out about 1 million payday loans in 2013). And what’s more, it seems that the efforts being made are having an effect on the payday loan industry, as businesses shutter their doors and repeat customers are blocked from taking out more loans by programs like Alabama’s. As the tide begins to turn against an industry that is known for trapping its customers in a debt cycle, we look ahead to see what the future has in store for payday loans.

Check Online Offers of USA Payday Loans:-In our life there are often situation when you need to get money quickly. To apply for USA payday loans you don’t have to seek the help of relatives or go to a bank. Online loan holders have created optimal conditions for quick application and receiving of cash loans. The easiest and most convenient way to solve the financial problems is to get payday loans in the USA.Online loan sites provide high quality and high-tech services in the field of microfinance. The clients of such sites have access to simple and reliable loans without collaterals, references and guarantors to be attracted. To get a cash loan it is enough to be over 18 years old, have a U.S. passport, e-mail, mobile phone and an account in one of social networks.Your comfort is the main goal when applying for loans online. If you urgently need money without collateral and hidden fees, please contact the chosen website so you could get a quick loan immediately after making an online application. You will need to make few clicks to fill in a cash loan application online. Just follow instructions.Advantages of online loan applications include a minimal package of documents is required, flexible interest rates, quick terms of getting money transferred to your credit card or bank account, simple online registration and application for a loan and the possibility of extending the term of loan’s payments without additional fees.Payday loans in the United States can be received at any time of day, any day of the week immediately after the application on our website at the map, resulting in the first call. Get a loan online quickly than elsewhere!Reasons why you suddenly needed money are numerous. But most importantly, under any circumstances, USA payday loans Just go to the website of fast loans and SMS. Then fill out an application for the required amount in an online form; take half an hour a message on your mobile phone with the decision at the request and to spend activation SMS to the contact number of the company to process a payday loan.You should order payday loans online because you easily get an instant approval on the application, undertake all necessary actions in online mode (from search options and to transfer money), to pay the cost of the loan at interest rates that are no higher than average bank ones. Get the best conditions on your USA payday loans.

Payday Loan Customers:-Nationwide, 5.5 percent of adults have taken out a payday loan in the past five years, with three-quarters borrowing from storefront lenders and the rest from online lenders.7 At the time of application for a payday loan, nearly 80 percent of payday loan borrowers have no available credit on credit cards and 90 percent have less than $300 of credit available on credit cards.8 Their median reported checking account balance is just $58.9 About one-fifth of the U.S. population (24 million households) is underbanked—that is, they have a bank account but use alternative financial services, such as payday loans. With no or low credit scores, underbanked consumers are often unable to get traditional loans.10Most payday loan borrowers are white, female, and 25 to 44 years old. However, after controlling for other factors, the following groups have a greater likelihood of having used a payday loan: those with no four-year college degree, home renters, African Americans, those earning below $40,000 annually, and those who are separated or divorced.11 In addition, most payday loan borrowers have low incomes: According to a Consumer Financial Protection Bureau (CFPB) study, 56 percent had incomes between $10,000 and $30,000, while another 12 percent had incomes below $10,000.12 Three-quarters of borrowers were employed either part-time or full-time. Nearly 1 in 4 received income in the form of public assistance (government benefits) or other benefits or retirement funds.

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Personal Loans

Personal Loans

Life’s constant changes demand that you have financial flexibility, and there’s no easier way to get that flexibility than from a Personal Loan from America First. With a solid credit score your Personal Loan from America First can be used for any expense and offer the following benefits:-

-Flexibility to use your loan for any expense – from vacations, to education, to special purchases.
-Simplify your life and budget by consolidating bills and having a single payment.
-Quick loan approval to help handle emergencies with ease.
-Flexible terms available up to 60 months.
-Save money with our low and competitive rates.

Personal Loans:-Life’s constant changes demand that you have financial flexibility, and there’s no easier way to get that flexibility than from a Personal Loan from America First.

Certificate Secured Loans:-Secure an affordable loan by borrowing against your America First Certificate Account. America First offers low interest rates – as low as 3.0% above your Certificate dividend – and flexible repayment terms that match your account’s maturity. Plus, we’ll provide financing within minutes, you can set up automatic payments and we’ll deliver the quality member service that defines America First Credit Union.

Consolidation Loans:-Save money. Simplify your life. Consolidate your loans with America First. We offer instant online approvals & the best in member service. Plus, our four options can help you pay off your loans quicker and lower your existing monthly payments. An Auto Loan or a Home Equity Loan could be just the right answer for your credit consolidation needs.

Line Of Credit:-With a Line of Credit from America First Credit Union, you can rest easy if you have an unexpected expense or experience a financial emergency. Your Line of Credit will cover charges beyond what you have available in Checking and help you avoid any costly overdraft fees.

Share Secured Loans:-A Share Secured Loan from America First is a good idea if you’re looking to build your credit or you need to make a necessary purchase but don’t want to dip into your savings. With a Share Secured Loan you borrow against your savings at America First and receive a low-rate loan, while still earning interest on your financial resources on deposit.

From the phrase, the personal loans are literally loans that are being made by a personal, with or without the borrower’s personal assets as the collaterals.But with the period of times, the phrase personal loan now has turned into something that is more commonly known as the unsecured loans.Simply explained, the unsecured loan is the loan which an amount of cash is being given by the lender to the borrower, without demanding any guarantee from the borrower’s assets.Although usually the borrower’s credit history is still being considered in the process.It is an insecure deal for the lender because of the amount of risks that the lender has to deal with. As the result, the lender then would set much higher interest rates on the loan, and also sometimes charge another additional fee.The unsecured loan is an easy way to get fast loan with less paperwork hassles. This type of loan is provided by online loan services, personal lenders, and also big financial institution, for example the bank of america personal loans.
The risks need to be cut as small as possible, so not only the loan’s additional charges would be increased, the limit of how much the individual can borrow is also being pressed.The number of how much the loan limitations and how high the interest rates/other additional fees would be are all depends on the financial history of the person that is applying for loans.

Applying for your loan:-Once you have found a refinancing solution that fits your personal preferences, your needs and your budget, it’s time to apply for your loan.Select your lender and complete your application in person, and depending on your lender, over the phone, or online. You’ll provide information about yourself and anyone else who is going to be listed as a co-borrower on the mortgage (like a spouse or partner). If you’ve already been preapproved, you may have filled out some of the application details by this point.

What you’ll need:-To apply for a refinance, you’ll need to provide your lender with documentation to help verify your employment history, creditworthiness, and overall financial situation. If you are applying with someone else (called a co-borrower, such as your spouse), they will also need to provide the same documents. Be prepared to provide the following:

-W-2s (for the last 2 years)
-Recent pay stubs (two most recent consecutive)
-Bank statements for all financial accounts, including investments (for the last 2 months, all pages)
-Signed personal and business tax returns (all pages and relevant schedules)
-If self-employed, a copy of most recent quarterly or year-to-date profit/loss statement
 -Most recent monthly statement for any mortgage, home equity loan or line of credit you hold on your home

Your lender may require more documents, depending on your circumstances and the type of mortgage for which you’re applying. You can expect your lender to ask you details about your employment and financial history. With your permission, your lender will also run your credit report as part of the process.Be sure to take your time and carefully fill out the application as completely and accurately as possible. Not disclosing credit problems up-front or holding back requested documents will only delay the process and potentially prevent approval of the mortgage, so it’s to your benefit to fully disclose everything about your finances.

Locking in your interest rate:-Since interest rates fluctuate frequently, things can change between the day you apply for your loan and the day you close. If you want to protect yourself against rising interest rates and ensure that the loan terms you used to build your budget are locked, you might consider locking in your rate with your lender when you fill out your loan application.A rate lock, also known as a “rate commitment,” is your lender’s assurance that the interest rate and discount points are guaranteed until the rate lock expiration date. The lender will provide the terms of the rate lock to you in writing, including the agreed-upon interest rate, the length of the lock, and any discount points you choose to pay.Of course, if you believe that interest rates will decrease in the near future, waiting to lock your rate may make sense to you. In the end, it’s a personal choice when to lock your rate. The rate must be locked prior to the lender preparing your closing documents. Talk to your lender about the choice that best suits your needs and your preferences.

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Understanding The Loan Process In The USA

Understanding The Loan Process In The USA

Organize Your Documents:-Whether you are buying or refinancing a home, there are many important documents that will be needed to process your home loan. The process of loan will depend on what status you currently hold in the USA, if you are a Brit. To make the process go quickly and smoothly, gathering the following documents, being prepared and understanding that the procedure in the States is more security conscious, will make it easier on you.

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