Debt settlement becomes a pain in the neck when you fail to act genuinely in the lending process bringing you lots of stress and worries. Financial crisis can occur at any time bringing along with it, time consuming commotion and application filing for loans to save your assets. Getting the right opinion is important and debt settlement advice is available at Consolidated Credit.
With some simple and careful steps, your lending process can go swiftly without hassle-saving you from the horror of debt. When going through the lending process, you should keep the following elements in mind:
Your lender would ask you to show your financial statements of the last two months. This will be done to make sure that you have funds. In case there has been a large deposit in your account in the previous month or so, make sure that you’re mentally prepared to give answers to the questions that the lender is about to ask.
Things that won’t cause hassle are gifts given from someone in the family or loans related to your retirement etc. Extra cash popping up from hidden drawers, mattresses and vases will not leave a good picture for the lender.
Alimony and Child Support
Although these expenses won’t show on your free credit scores, they will eventually appear on your tax returns. If you do not possess a copy of your tax returns, then the lender can ask the IRS for a copy because they have the right to do so. So it is better that you get your copies out in the open before the lender thinks that you have something to hide.
If you’ve lost your job recently or around the time of closing, the lender is obligated to call your workspace within forty eight hours of closing to ensure that your employment is intact. However, if the human resources department of your jobsite confirm otherwise, then it’s probably time to say goodbye to the lender too.
Retirement Account Loans
So you’re taking out money from your retirement account to make some kind of a down payment or you’re trying to cover up approaching costs, which will ultimately end up visible on the monthly paycheck that you receive. This will be added to your monthly debt that as the borrowing had been looked upon as an asset.
Making huge payments in the form of your new car lease do not leave a good impression on the lender. If the amount is small, it can be overlooked but making payment installments for leasing a Jaguar won’t get you a loan for sure.
Since you’re about being turned into the debtor, you have every right to ask any questions that pop up in your head. The questions could be direct or lengthy but you don’t have to worry about it as the lender is obligated to answer any questions that ponder your mind.
However, if the lender fails to answer your queries or hesitates in any way, it’s better to step away and look for another lender. That’s because, you can’t borrow money from someone whom you have deemed suspicious or not worth your trust.
As you’re allowed to question your lender, so is he. The lender will ask you all sorts of questions regarding your financial needs and what compelled you to look for a loan. These questions may involve your legal and medical statuses. No matter how embarrassing an illness may be, you have to give your lender a clear look at your medical records. This will satisfy the lender that you’re going to be alive to pay him back and not be looking forward to being hospitalized to weasel your way out of debt settlement.
You also need to give details of your legal status, i.e. are you divorced, single or in the middle of a custody battle? This will help the lender decide whether or not you’re eligible for the loan.
Don’t try to con your lender into giving you unneeded help because in time, he will find out the truth. So be honest at all times and let your honesty describe your need and necessity for the loan.
The lending process can be easy or difficult depending on the tactics you’ve used to obtain the loan. Do some research and find the correct person who will give you advice on lending and the lenders. If you choose to search online, debt settlement advice is available at Consolidated Credit.
The above article is composed and edited by Sarah James. She is associated with many finance and debt related companies as their freelance writer and adviser. In her free time she writes articles related to debt settlement advice which is available at Consolidated Credit etc.