Not everybody knows the advantages that homeowner loans provide. However, the fact that higher loan amount loans can be obtained when using a property as collateral is widely accepted and that people with assets can get unsecured personal loans approved fast is also widely known. A common consult that we receive regarding homeowner loans combines these two concepts: Is it possible to obtain approval for high amount loans fast thanks to ownership?
As probably expected, the answer to this question is not at all simple. Not only high amount and fast are two relative concepts but there are also many additional variables involved in a loan transaction that can alter the results of any financial negotiations. Fast approval can be obtained? YES; High loan amounts can be obtained? YES; both at the same time can be obtained? The answer is regrettably: MAYBE.
Security Or Collateral As The Conflict Variable
Homeownership let's you, if enough equity is available to obtain a home loan or home equity loan which can provide high loan amounts. The loan amount you can obtain equals the amount of equity available on the property. However, though equity opens the door to high amounts, it also closes it when it comes to speedy approval because a property background check needs to be done by the lender and this takes time.
Therefore, when it comes to home equity loans, there is no question about whether you can get high loan amounts provided that you have enough equity on your property as a homeowner. However, whether you can obtain fast approval or not will depend on how quick you need the money. If a couple of weeks is fast enough for you, then the answer is YES but if you want a same day loan or approval within a couple of days for a home equity loan, then the answer is probably NO.
Unsecured Personal Loans For Homeowners
When it comes to unsecured personal loans the situation is reversed: fast approval is almost guaranteed for homeowners since approval is already fast for non-homeowners because all the lender needs is a credit verification process which can consist on a simple credit report pull. But the loan amount will turn out to be another issue.
It is true though that being a homeowner will determine approval for higher loan amounts on unsecured loans. The question that rises is: how much money is needed? Though tens of thousands of dollars can be obtained through an unsecured loan when you are a homeowner, it gets harder when you are seeking larger amounts like hundreds of thousands. Therefore, homeowner unsecured personal loans can provide high loan amounts and fast (almost immediate) approval but: how big are the sums offered? That is another question.
Credit Score And History Issue
Finally, your credit score is another important factor that will have implications on both variables. A bad credit history will jeopardize your ability to obtain higher loan amounts even if you are a homeowner and even if you get approved, it will almost certainly not be fast enough because the lender will want to make sure that you will be able to afford the monthly payments and you will not default on the loan. Therefore, a long credit and income verification processes may be required.