What to do before you can take a loan?
One of the questions we get asked most often by our customers is, “How do title loans work?” Before you get a loan, you will need to meet certain requirements and then submit a deed to the lender that includes the property. They pay you off after they find a buyer and you should make sure to provide them with copies of all of your home’s important documents.
The lender may want to see documentation for other homes that have been sold. They may also want to see the tax appraisal. They may ask you to send in copies of all of your documentation so that they can perform their due diligence. If they do not get the sale through then they may require you to continue making payments and maybe even reduce the terms of the loan.
They are short-term loans. You borrow the money for a specific amount of time. The lender provides you with the document called a deed to the property. This document must be signed by both parties and is an official record of ownership.
What documents should be issued to you?
When the lender has made the final determination on the value of the property, they will issue you a title certificate. This document is used to determine the legal ownership of the property.
Title loans are offered to people who are just starting out or recently laid off from their job. Most lenders will require that you make payments to continue the loan and minimize any risk to the lender. You may be required to meet certain conditions such as providing copies of your employment records.
For starters, they are short-term loans and you will pay the balance off after a set period of time and this amount may vary by lender.
This financing is offered for a number of reasons; the most common being to get an extension on the borrower’s circumstances or relieve some debt. If you qualify and are approved for a loan, you will pay off the balance on the title loan each month. When the payment is complete, you will be on your way to owning the property.
What about maintenance or repairs?
Those fees can be added onto the loan and the lender will help you with that if necessary.
Many people who have suffered from a financial hardship are given a loan for the home, as they are a first time home buyer. Some people are being accepted simply because they may qualify for the loan, however the ability to make a down payment may be an additional benefit.
A loan without an interest rate may be helpful for some. Not every lender offers a low interest rate on this type of loan. So keep that in mind when shopping around.
There are lenders and companies that offer loans for first time home buyers that do not need cash but want a little bit of equity.