Obtaining a loan is not always as easy as the general public would want to believe. There are plenty of factors that can appear and stand in the way of you finding the financing that you require for a large purchase or investment. Though it might seem hopeless, especially if you have been rejected by multiple lenders, there still are methods that you can explore. Stated incoming financing, for example, is a simple and easy way to be able to get the money that you have been looking for.
To begin, it might be a good idea to take a look at what this type of financing entails. With traditional financing, you are expected to put down your income and your assets, and then your lender will verify the income and assets with the correct institutions. With stated incoming financing, however, the process works in a slightly different way. While you will still have to put down your income and your assets when you are filling out a loan application, you also have the chance to do things in a way that is a little bit different. You can state your assets, and these will not be verified by the lender.
The reason that this is advantageous is due to the fact that you do not have to go through as much red tape to get the loan that you are looking for. The only verification will be in regards to your income, and that will primarily be a simple call to your job. The lender wants to make sure that your income is in the right ballpark as you stated on your application. The assets, however, will all be left up to you to state and be honest about. This means you are more likely to be approved for this kind of loan than you would be for a traditional bank loan.
While it might seem enticing to learn that you are more likely to qualify for stated income financing than other types of borrowing, there are still a few things to keep in mind. For one, the interest rates on this type of loan are often much higher. This is due to the fact that you are stating your assets, so the lender is taking a bigger risk by trusting your word on this. If you do not mind the higher interest, you are going to be in an excellent position to move forward and find the right financing for your needs.