Does An Auto Title Loan Impact Your Ability To Get A Mortgage?
October 22, 2021 | June Mckaig
Can an auto title loan impact your ability to get a mortgage? Well, there are a few things you need to know about what an auto title loan is and how it works. This can help you determine if it truly does have an effect on your mortgage application.
Here is what you need to know about our auto title loans and their relationship to your mortgage.
What Is An Auto Title Loan?
A title loan from us at Fast Auto Loans, Inc. will let you borrow a lump sum of money – between $300 and $15,000 – when you use your vehicle’s title as collateral. This loan helps you handle emergency expenses you cannot handle alone.
When you get one with us, you can use a car, truck, or van as your vehicle. We use the resale value and condition of your vehicle to determine how much you could get.
Does Having An Auto Title Loan Affect Your Mortgage Application?
Title loans aren't shared with credit agencies. However, you still have to tell your potential mortgage provider about them since they are a "financial obligation." Because of this, having an auto title loan does affect your mortgage application — all financial responsibilities do.
Mortgage lenders consider all your debts when determining whether they should give you a mortgage, as well as the amount they can offer you. Therefore, your current debts, including those not reported to the credit bureaus like fast auto title loans, play a role in how the provider views your application.
If you are looking to apply for a mortgage and don't have any outstanding personal loans, you should avoid getting one. Of course, this isn't always possible. But, it is best practice. Other types of loans that could affect your ability to receive a mortgage include:
- Car finance;
- Credit card;
- Mobile phone contract;
- Utility contract;
- Other personal loans;
Can You Get A Mortgage If You Have An Auto Title Loan?
The good news is that you may still qualify for a mortgage with a car title loan or other personal loans. Even though mortgage providers take your existing debt into account, they won't necessarily prevent you from being successful.
The purpose of scouring your outstanding loans is to figure out whether you can afford an additional financial obligation. Put simply, you need to prove that you can repay all your debts even with a mortgage. It's pretty challenging to say how all mortgage lenders assess your application as they all do it differently. But, you should always strive for the best deal by talking to a whole-of-market broker.
What Are Whole-Of-Market Brokers?
Whole-of-market brokers work with seemingly countless mortgage lenders across the state and know who will most likely accept you with existing personal loans. Typically, specialist brokers understand how to make your application successful so you don't risk countless hits on your credit rating.
Could Having A Personal Loan Actually Help Your Mortgage Application?
Surprisingly, having a personal loan could help your application if you're sensible about it. However, it must be a loan that's reported to the credit agencies (i.e., not a title loan). If you wish to use a personal loan to benefit your mortgage application, you need to think long-term. The main two ways it can help your future application success are as follows:
- Making timely repayments boosts your credit score as it's proof you're responsible with your money. A few financial experts would advise you to make a few credit or debt repayments a couple of months before you apply for a mortgage to benefit from the increase.
- Using a personal loan to refinance or re-organize your other debts and credit cards. This allows you to get rid of the debt and get better terms with your personal loan. Just make sure you are choosing the right personal loan.
Need An Auto Title Loan? Get One Right Now!
Sometimes, you can't help but need funding quickly to cover an emergency. In which case, fast auto title loans might be an option. For emergencies like medical bills or home repairs, you need a loan simple process to follow. Thankfully, the auto title loan process is easy when you follow the steps below:
- First, complete the form found on this website. One of our loan representatives will call you to explain the required items and discuss the entire process. They will set up a meeting for you either at one of our Arizona title loan places near me or you can have us come to you.
- No matter your meeting point, go there with your driver's license, vehicle, and your lien-free title to your car. The verification agent will assess your car, van, or truck and required items to determine if you qualify for approval and for how much.
- If you do gain approval, they will go over the loan terms with you and answer any of your remaining questions. They will also go over the paperwork and have you sign the agreement. Once you are done, you can either get the money the same day or the next bank business day.
Secure An Auto Title Loan Today!
When you need quick money for emergency expenses, a title loan can help. And since it is not reported to the credit bureaus, it won't impact your credit score, which is important for a mortgage. This kind of loan can really help get you out of a short-term situation so you can go back to working on your finances in the long term. Fill out the online form now to get started on our process.