Online home loans are for people who want to use the equity in their house to borrow money. Applying online can simplify the process of finding the best loan.
Sometimes you just have to borrow money for something important. Perhaps you are getting married or building an extension to your house and the only way of raising the money is through a loan.
Home loans are for home owners who can show that their property is worth more than their outstanding mortgage. This equity is then used as security by the lender when arranging your loan.
Using equity in your property as security reduces the risk for the lender so that you can often borrow larger amounts than with unsecured personal loans.
Even though the number of home loans offered by lenders has fallen during the credit crunch, you can still find loan plans for up to 80% loan to values if you have a good credit rating.
Online home loan quotes are available on many financial web sites such as MoneyHighStreet.com and this offers an easy way to start the process of applying for a home loan.
Applying for an online home loan
People who want to apply for an online home loan would follow these steps during the application process.
- Fill in an online home loans application form. You only need to provide a few details about yourself at this stage.
- Discuss your exact requirements and circumstances with a qualified and experienced loan specialist.
- If you are eligible for a home loan, the specialist will offer you loan plans and interest rates for you to consider. If you want to, they will send you application papers to sign through the post.
- Assuming that you are still happy to proceed, you return the signed application form to the broker who will arrange for your home to be valued. The broker will liase with the lender to ensure that the application process is as smooth and efficient as possible.
- When the lender is happy that everything is in order, and you still wish to go ahead, then the funds will be released to you as soon as possible.
You can see that online home loans can be easy to arrange, however there is no obligation at all to proceed if you change your mind or find a better deal elsewhere.