Benefits of federal loan: Loans are offered irrespective of the credit history. As most students have no credit history, this is a boon. Approval is automatic if the student meets the program requirements.
>>>Your home loan's approval rests on having healthy credit history, sufficient income and repayment ability and a comfortable down payment amount. External factors like the value of the house also pays a role in getting your home loan approved.
>>>It could be to consolidate debt, to pay for major personal expenses, home renovations etc. It is best to always keep in mind the exact amount of money you need while applying for a loan and its fixed monthly payment.
>>>Your educational background, your general impression on lender and personal credit score are used as indicators to your repayment capacity. The state of the economy and the trends in your industry are external factors which also determine your repayment ability.
>>>Lack of Equity: Most of the home owners applying for refinance mortgage loans get rejected mainly because of lack of home equity ownership which just means applying for a loan higher than the value of the house they want to mortgage.
>>>Avail a home or car equity loan: Equity loans have a fixed amount and give a longer, but a fixed term, to repay the loan. These loans also have a fixed low-interest rate compared to credit cards. However, it is imperative to note that the borrower's home or car is held as a collateral.
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