So you’ve fallen in love with Guam. You’ve decided to make it a second home by making an investment on the island. You want to get it going, and need to apply for a loan but don’t know where to begin. Here’s is a quick guide to help you through the process.
The loan application process is a fairly straightforward process. Make sure you have the following information readily available:
Minimum Requirements:
- Credit Rating: It varies between lenders, but the lowest average score is 640.
- Annual Income: Typically $25,000 or more.
- Credit History: Lenders usually need to see a credit history of several years, in order to qualify.
- Debt-to-income ratio: Most lenders prefer a debt-to-income ratio of 45%, excluding your mortgage.
Criteria For Eligibility:
- You must have an active checking or savings bank account.
- You must be over 18 years of age.
- You must be a citizen or permanent resident of the United States.
- You must have a regular source of income.
Required documents:
- Your personal details, such as your full name, date of birth, Social Security number and driver’s license number
- Your contact details, namely your address, phone number and email
- Your current employer’s name, address and the length of your employment
- Your complete bank account information
But before you begin the application process, make sure you address the following:
- How much money do you need? Your loan amount should be based on the expense you’ll need to cover and your income. Determine how much you can comfortably spend each month ang borrow less than your maximum. This way you avoid stretching yourself too thin. Carefully calculate the amount of debt you can handle and the amount of your purchase before you begin the application process.
- What’s your current credit rating? Your credit will establish how much you are qualified to borrow. Most lenders prefer good credit scores and several years history before they grant you a loan. Check your credit rating before you apply so you know what type of loan you qualify for.
- Choose the right loan. Shop around, compare lenders and find a loan that’s right for you. Check interest rates, fees loan terms and payment options before settling with a specific lender.
Now that you’ve selected a lender to work with, you’re ready to complete your loan application. Go to the lender’s website and find the loan application form to fill out. Input all the necessary information there, including the amount you are hoping to borrow and for how long before you can pay it back.
Once everything is filled out, confirm that the information is correct and submit. It doesn’t usually take too long before you’ll be notified with a decision regarding your loan application. If you’re approved, your lender will contact you to confirm your information and loan funds are usually released in one business day.
Make sure you make your payments on time so you don’t pay more than you should in penalties and fees, as this could eventually affect your credit.