Most online guarantor loans applicants are clueless as to the impact of what they fill in the application forms for a loan and yet the information provided determines to the lender what they are worth and whether they are eligible for the facility they are applying for. Lenders take into consideration the age, the residential and the employment status of an applicant.
The employment status; the type of employment an applicant has gauges his affordability of a facility requested. The employment status is seriously considered,bearing the fact that a person not employed or on benefits will have none or little disposable income.This reduces the chances of getting a loan with any financial institution or lender for piggy guarantor loans. Whereas for an applicant who is employed and has been in employment for many years, the chances of being considered for a facility rises significantly as this offers more credibility to his application.
The residential status of the applicant; the application forms require the filling of an address and clarification as to whether the home is owned, rented or the applicant resides with parents. A homeowner is the person who is mortgaging or has the outright ownership to that property. This fact will provide security to the lender incase the loan is defaulted upon. However for the piggy this is required of the guarantor and has little impact on the applicant’s application since the security attached is provided by him. The question of ownership however goes hand in hand with the duration of residence at the property; an applicant who is moving all the time may raise many question marks lowering his credibility for piggy guarantor loans.
Age of the applicant; this is often a consideration when risk is being measured since the ages considered to be reliable and responsible are thirty years and above, with younger applicants shunned. However with the piggy guarantor loans the considerations are pegged more on the guarantor and not the applicant. For a home loan, guarantor is the third party who will help you get the loan by giving extra security support.
The guarantors are limited to spouses and immediate family members and they are the helping hand for buying a home. There are many lenders who allow family member’s help to buy your home by offering security. Person giving this type of help is called guarantor. It is totally different to be a co-signer or co-applicant. The co-applicant will be included on a loan and is liable for the loan until it gets repaid. It’s very important to see that guarantor’s capability to borrow is reduced when they’ve agreed to be a guarantor. Suppose you do not have enough of deposit and do have an ability to make required loan repayments, then guarantor can assist you to secure the extra additional funds for buying the home. Saving deposit is daunting and hard to if you are paying rent also. By having guarantor, you can borrow full purchase price or at times even costs linked with buying property.