Everybody applies for a loan at one point in life. Whether it is a secured or unsecured loan, there is a myriad of reasons why you might find yourself in dire need of credit.
In the event you decide to apply for a secured loan, it is in your best interest to be conversant with the details of the application process and know the period of time you will have to wait before your loan is approved. As expected, this will vary among lenders but a major determinant to how expedient the process will be is your efficiency in filling up the relevant documents and any impediments that may arise. So, how long does a secure loan take to process?
Given that a secured loan is usually tied to a piece of property. It is to an extent more involved compared to the standard loan application procedure. Due to this, more documentation is needed and this slightly drags the process. In many cases, lenders will receive your application for a loan online. This, you can do by filling up a brief application or by asking for a call back from a member of the lender’s team if you want someone to guide you through the application process.
Generally, the start of a secured loan application process to the completion will involve the following stages:
- Completing the application forms
- Valuation of the property
- Confirmation of value
- Signing of contracts
- Money transfer
Once you have completed the loan application forms, the lender will hand you a quotation that is subject to justification and confirmation. If you are satisfied with the quote and make the decision to proceed, the lender will examine your credit reference report and you will be expected to show proof of income. You will also be required to confirm that the sum of equity you have back home will sufficiently cover the loan amount.
Lenders are usually required to provide you with roughly a 16-day window in which you get to consider the loan. This period will begin from the day you are handed your credit agreement to review. During these 16 days, the lender is barred from making any efforts to contact you so that you are not coerced into taking a decision. However, you are allowed to reach them in case of any queries you need answers to.
On the eight day of the sixteen day period, you will be given the credit agreement to sign and once the entire period has elapsed, the time to consider will also have run out and you must provide a decision. When you incorporate the consideration period, the entire loan application process to the point funds are wired to your account will on average range from about three to six weeks.
Before the funds are transferred to the loan applicants, the lender usually contacts them to once again confirm all their details and subsequently organize for the transfer.
The above is a precise account that will help you know when to expect the funds of a secured loan you are planning to procure. For more information about loans and credit, visit Badcreditsite Loans.
1 Comment
Thank you for the great information, now I have a better understanding about loan processing. Keep sharing!