If you're considering applying for a title loan but are unsure how it might impact your ability to secure a mortgage, you’re not alone. Understanding how an auto title loan works and how it influences your financial standing is crucial when preparing for a mortgage application. Here's everything you need to know about title loans and how they relate to the mortgage process.

What Is An Auto Title Loan?

An auto title loan from Fast Auto Loans, Inc. allows you to borrow a lump sum of money – ranging from $300 to $15,000 – using your vehicle’s title as collateral. This type of loan can help you manage emergency expenses that you cannot cover on your own.

When you get an auto title loan with us, you can use a car, truck, or van as your vehicle. The loan amount you qualify for depends on the resale value and condition of your vehicle.

How Does A Title Loan Affect Your Mortgage Application?

Auto 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 could possibly 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, it’s best to avoid taking on new debt. However, this isn’t always possible. Other types of loans that could affect your ability to receive a mortgage include:

• Car Finance
• Credit card debt
• Mobile phone contracts
• Utility contracts
• Other personal loans
• Overdrafts

Key Considerations for Mortgage Applications with Auto Title Loans

1. 1. Debt-to-Income Ratio: Lenders look at your debt-to-income ratio to determine if you can afford a new mortgage. This ratio includes all your financial obligations, such as credit cards, car finance, and personal loans.

   2. Transparency with Lenders: It's important to be upfront about any title loans you have when applying for a mortgage. While these loans may not disqualify you from obtaining a mortgage, they can affect the loan amount you are eligible for.

   3. Impact on Credit Score: Auto title loans do not typically affect your credit score because they are not reported to credit bureaus. However, they can still influence your overall financial profile.

Can You Get A Mortgage If You Have An Auto Title Loan?

Yes, you can 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 have access to a wide range of mortgage products from various lenders. They can help you navigate the complexities of mortgage applications, especially if you have existing financial obligations like auto title loans. These brokers can provide personalized advice and improve your chances of securing a mortgage.

Can You Get A Mortgage with a Title Loan?

Yes, it's possible to get a mortgage even if you have a title loan. Lenders will focus on whether your current debt levels, including title loans, make it feasible for you to manage a mortgage. They’ll assess whether you can take on additional financial responsibilities without falling behind.

 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 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:

1. 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 you or you can have us come to you.
2. 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.
3. 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.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.