How long does my loan take approval?

Lenders do everything in their power to provide the right loans to the right people. One of the steps in lending is checking. There must be sufficient information about the credit applicant to be sure that the lender is not at risk from providing the credit.

The approval of a loan is an important moment for the credit applicant. At that time it is assured that the loan is provided and the amount will be ready within a few days. But the approval of a loan has a certain duration. It may take a while for the loan to be approved, and this also differs between the different lenders. It is on average 3 to 10 days, but some loans are only approved after two weeks.

The approval of your loan

The approval of your loan

A large number of issues are involved with credit. It is up to the bank to ensure that the credit risk is as low as possible. Banks and lenders have come up with all kinds of tests, questionnaires and formulas to find out what the right loan is for a situation. And this situation is different for every person; one person can pay more each month than the other, and the amount of the credit also varies from person to person. The lender is therefore busy with this, because it involves a number of calculations.

Request a free quote without obligation

The lender will look at the financial situation, among other things. There must be enough money left over each month to repay the loan, so income, disposable income and the guarantee of a job are looked at, among other things. This security is needed from the lender to get an idea of ​​whether the credit applicant will pay off the credit properly.

The financial past also has an impact on the lender’s assessment. If you have had a negative banker registration in the past, this reduces the chance that you will approve the loan. There has been a problem with a payment in the past, so the lender may decide not to grant the loan based on this problem.

Get your loan approved faster

Get your loan approved faster

Do you want the loan through as quickly as possible? Then you can take a number of steps to increase the speed slightly. This will not ensure that your loan is approved the same day, but can help to reduce the average waiting time from 3 to 10 days to 2 to 5 days. These steps certainly pay off when there is a hurry to get the credit.

– First of all, provide a good overview of your financial situation. Put all financial documents on the table and be transparent about the expenses that you make every month. Also calculate all your disposable income and indicate on this basis that you can repay a certain amount every month. This way, the lender can better match the loan to your situation.

– Create as much confidence as possible during the credit application. By being transparent and cooperating, you increase the confidence of the lender and you can leave a positive feeling behind. Increased confidence will result in the provider increasing the speed of approval.

– Ensure a good financial situation. If you have never had a loan and are not registered with the banker in a negative way, you will get a loan sooner. These problems will cost the provider a little more time, so approval can come 2 to 3 days later.

– Choose the most suitable loan. The lender can have the loan approved much faster. The risk analysis of the lender will take less time when there is much clarity about the amount that is being repaid, the term of the loan and the total credit. Don’t go for a loan that fits far beyond your monthly budget, or that is well above the amount that you really need.

– In general, small credits are approved faster. A provider will sooner accept a loan of € 5,000 than a loan of € 50,000. The risk and the total loss are higher, so the approval of the loan will also take more time.

Be patient when approving the loan

Be patient when approving the loan

The above steps can help to shorten the duration of the approval, but are not a guarantee that it will be approved as soon as possible. Not every lender will act faster as a result of these steps, so be patient when you submit the credit application. Once the loan has been approved you will soon receive the amount, so a few days will make little difference.

Can I mortgage my house without having a stable job?

 

It is important to understand what are the advantages and disadvantages associated with mortgage my home to obtain a loan, without having a job. Nicely, if I need money and am don’t have a stable job, I might think that the best way to get it will be through a mortgage, but I might be wrong.

It is a fairly common exercise and in clear growth these days. Proof of this is that nearly 90 thousand people within 2016 had mortgaged their house and the following year just before April at least 30 1000 people had registered mortgage loans in the Public Registry.

 

 

Do you know the advantages of having a house whenever applying for a loan?

One of the advantages are:

  • It represents a fast way to get a loan
  • You do not need to have a steady job:
  • Will not require income checks to reach credit.

 

Do you know the risks of mortgaging the home without having a stable work?

Some of the risks you will have to face get to mortgage your home to get a loan, without having a career are the following:

  • Difficulty paying well-timed fees. Without a stable earnings, there is a greater risk associated with not paying the costs per day.
  • Spending higher interest: Many times the eye is higher than if the discussion of the loan was depending on income.
  • Without having money to bear the costs from the negotiation: One of the expenses may be the main contract that is agreed upon between the owner of the house as well as the financial institution, as well as the qualification legal rights before the DIAN.

In short, I can quickly mortgage my house without having a well balanced job but this option provides its risks and also does not always mean the final resolution of our problems. Even when interest rates are getting down, I must take the danger of losing it.  

Maximum loan: what can I borrow maximum?

This is how the maximum loan is calculated

This is how the maximum loan is calculated

A loan is a sum of money on which interest is paid. You also pay costs to the lender, including administration and repayment costs. These costs must be paid in full within the duration of the loan. The lender will therefore calculate the monthly costs you can incur to pay off a loan. A maximum loan can be calculated based on this.

If you can repay € 500 per month, of which € 100 consists of interest and other costs, you will be able to repay € 4,800 (12 x € 400) annually. In combination with the duration of the loan, for example 5 years, it is determined what amount is linked to the maximum loan. In this calculation example, the maximum loan is 5 x € 4,800 = € 24,000.

There are different numbers within this formula that are influenced by your personal situation. Consider the duration: not every loan has a duration of 5 years. For example, the duration of a mortgage is between 20 and 30 years, so that the maximum mortgage is also higher than the average loan. And then there is the monthly repayment. This is calculated specifically on the basis of your financial situation, and is related to your monthly income, expenses and disposable income.

Is it advisable to take a maximum loan?

Is it advisable to take a maximum loan?

It sounds very attractive to go straight for the maximum loan: if you currently have enough money to repay it every month then it seems like a good idea to go for the maximum amount. After all, you have enough income to pay the repayment month after month and thus continue to pay off the loan.

But that does not mean that you must immediately go for the maximum loan. It is sometimes better to take a step back and find out what amount you need. It is better to borrow too little and borrow an extra amount afterwards than to take the maximum amount in advance and borrow too much. Because a loan that is too high comes with considerable extra costs, so that you will spend a higher amount each month and therefore also have less money left over.

Think back to the calculation example given above. Based on the monthly repayment and the term, it has been calculated that the maximum loan is € 24,000. And if you need € 20,000 in this situation, it is a shame to borrow this € 4,000 as an extra. You pay continuous costs on this € 4,000, which means that you lose extra money every month. In addition, it takes longer for the total loan to be repaid, because you need 20% more time to repay the loan. It is therefore not worthwhile to borrow this € 4,000 extra, because there are only extra costs involved.

It is better to borrow too little than too much

It is better to borrow too little than too much

With a loan it is always better that you borrow too little than too much. You must make a cost estimate in advance and then look at the options that exist. The maximum loan is not always interesting, and it is a waste of the extra costs.

If you do not yet have a clear picture of the total costs that you are going to incur – and which you want to cover by taking out a loan – then it is smart to opt for a revolving credit. In this case you will receive a maximum loan, but will only incur costs for the amount that you take out. If you have a maximum revolving credit of € 24,000 and you withdraw € 20,000 of this to cover costs, you do not pay for the extra € 4,000 that is currently in the books as revolving credit. This saves a lot of money and at the same time offers the option – when it is necessary to borrow – to borrow more quickly.

Think carefully about the maximum loan

Think carefully about the maximum loan

Always make a well-considered choice when you take out a loan. It sounds particularly attractive to immediately borrow to the maximum in order to have a large amount. Yet it is often financially justified to opt for a smaller loan or take out a revolving credit.

Retrieve your debts

You know you have debts, but how much again? And with whom? If you lose track, you can request your debts and put your administration in order.

Having debts is annoying and can cause many sleepless nights. After all, a debt must also be repaid, naturally with interest. This makes the amount to be repaid higher than the amount you initially borrowed, and taking out that loan .. you didn’t do that because you had it so wide, on the contrary! To ensure that you don’t fall into the drip because of the rain, it is wise to try to prevent as many debts as possible in the first instance. So always think carefully before you take out a loan: is there really no other way out?

If you already have debts

If you already have debts

If you have already entered into debts in the past, at least try to avoid creating new debts. This also means that you accurately map to whom you have which debts and at what interest rate you have to repay this debt. If you now have more cash, you can choose to pay off the most expensive loans first – provided that accelerated repayment is permitted, of course. But what if you do not have a good understanding of what debts you have outstanding?

Retrieve debts

Retrieve debts

If you want an exact overview of all your outstanding accounts, you can request your debts from the BKR. The BKR , or Credit Registration Office, is a central administration point in which consumer credit data is stored. For a small amount (around 5 euros) you can request an overview of your outstanding debts and credits from the BKR. Keep in mind that you cannot request all your debts from the BKR: loans from the Social Services, student loans, mortgages and rental debts are not recorded at the BKR.