Frequently Asked Questions

FAQS

Personal
Business
Mortgage

Personal Loans

Personal loans are highly versatile, and lenders will allow you to use this loan for pretty much anything. Most people take out personal loans to consolidate debt, pay off medical expenses, get needed car repairs, or credit card payoffs.
You do not need collateral to qualify for a personal loan. Instead, lenders will use your credit history, income, debt to income ratio, and other debt obligations to determine your eligibility.

There are personal loans with collateral available as well.

Lenders understand that you may want to shop around for the best rates and terms. That is why they perform a “soft pull” credit inquiry to make sure you prequalify without affecting your credit score. Then, once you have agreed to a loan, they will do a full credit report to ensure all the initial numbers are correct, affecting your score.
Personal loans are granted based on your credit history and ability to manage debt. That means lenders will want to see proof of income so that you can repay the loan. This could include employment pay stubs, cash flow from investments, check copies, bank account information, statements, and proof of other debt.
The good news is there are loan plans for pretty much anyone in any situation. What will change are the terms of your loan. If you have had a few late payments here and there or have gone through financial difficulty in the past, you may see a higher interest rate on your loan. This is because the lender is accepting a higher risk. The best way to improve your credit rating is to pay all your debt on time to the best of your ability.
Some lenders can distribute funds after processing your application in as little as one day. We always suggest you read the terms carefully to ensure you are not getting any additional fees for the accelerated timeline.

You may pay off your loan earlier than your final payment, but again, be sure to check for any fees for early payoff. Lenders are counting on your interest payments as their income from the loan, so they will often attach a smaller loan payoff fee to guarantee some income from the deal.

Business Loans

Business owners can leverage their company assets to receive loans based on their income and expenses, lasting anywhere from 3 months to 25 years. Typically business owners will prove their income through sales receipts and a balance sheet with documented evidence. Then a lender looks at the possible risk of offering a loan and creates terms. Most business loans are used to expand, finance payroll, add inventory, or invest in equipment.
Lenders will ask for collateral in terms of equipment, property, assets, or ownership in the business to ensure their investment. They may ask for a percentage down to guarantee the loan. Most SBA (Small Business Administration) loan interest rates are capped, which is why they are such a popular program.
There are a lot of business loan options. You can probably find a lender if you can clearly communicate your need, and your ability to pay off the loan. The more traditional are SBA, lines of credit, short term, or long term loans. We also suggest working with a reputable bank or lender and not seeking alternative lending sources.
Lenders always want verification of cash flow. They will request financial statements, business licenses, tax returns, legal documentation of your business, proof of collateral and, previous bank statements.
Your personal credit score is not the only consideration for a business loan. There are plenty of lenders willing to work with your business situation and offer you reasonable terms based on your time in business and previous history.
This will mainly depend on the type of loan, how prepared you are to submit your verification paperwork, and the lender. You should expect a 30-45 day period, but that can be shorter with some lenders.

Mortgage Loans

There are 5 main types of mortgages available. Conventional loans require a higher credit score of 620 or better and at least 3% down. FHA, or Federal Housing Administration loans, will work with credit scores as low as 500, and you may have to put down 3%-10%. VA loans are specifically for military service members, veterans, and surviving spouses. USDA loans are backed by the US Dept. of Agriculture and are designed for rural areas. Then there are non-conforming loans for high credit scores of 680 or higher and often require 20%. There are other options available, so you should prequalify first to see all the possibilities for your personal situation.
3 factors can lower your rate. The first is your credit score. The higher your credit score, the more the lender will view you as a risk-free investment. The second is your DTI. This is your debt-to-income ratio that tells a lender the amount of your monthly income that goes towards debt. You want lower than 43% to really sweeten the deal. The last factor is your down payment. The more you are willing to put down, the smaller the loan will be. This reduces the risk to the lender.
Yes, but there are conditions. Your credit score is a significant factor in how much of a rate you will receive. You also should wait at least two years after being released from bankruptcy before applying. Some lenders will work your individual situation, but they will most likely need more paperwork to verify you can pay back the loan.
You will need to verify all your debts, incomes, and financial assets. This means you will need your previous 1-3 years’ tax returns, pay stubs or proof of deposits, debt documents, and you may need to verify your job or income streams.
There are three typical lengths for mortgages, including a 15, 20, and 30 year period. Lenders are available for shorter lengths or specific periods.
Yes and no. If you already have the capital to invest in a home, you don’t need a mortgage. Otherwise, you should get prequalified for your mortgage before setting your sights on specific properties. This process will tell you how much of a mortgage you can get and help focus your property search.