Once you decide that a guarantor loan is the right move for your financial situation, there are numerous steps you must complete to finish the process. Luckily, the process is generally fairly simple, and only varies slightly from one lender to the next.
Your first step before securing a new guarantor loan is to select a verified direct guarantor loan lender. The Lenders List provides information regarding local lenders who offer the service, including key details like their lending rates and standard terms. Take some time to compare what each lender has to offer, and choose the option that has the terms you need at an interest rate that you can afford.
Working with the Lender
Once you select your ideal lender, you must complete an application. Every application requires certain personal details including your name, physical address, and other contact information. Then, you will need to confirm the amount you are hoping to borrow as well as choose a borrowing period. The lender will then provide an estimate regarding the associated repayment expectations, often based on a specific repayment amount being due on a specific date every month.
At this point, you have the option of moving forward based on the estimated repayment obligation, or you can make changes. For example, if the monthly payment feels too high, you might want to consider borrowing less or extended the repayment term (if available).
In some cases, additional options are not available. When that occurs, you can choose to move forward based on the displayed estimate, or you can stop the borrowing process and not pursue the guarantor loan.
Once you have decided that the terms of the loan meet your needs, you will need to supply personal information regarding your guarantor. It is critical that you obtain your guarantors permission prior to submitting the application. Not only does this give you an opportunity to ensure their information is entered accurately, but it also confirms that they are aware of your intention to list them as a guarantor.
The guarantor loan lender will contact your proposed guarantor directly for any additional information as well as to confirm their willingness to participate as a guarantor. If credit checks are required, they will be obtained at this time to determine whether your application will be approved.
Once Your Application is Approved
If your application is approved by the lender, you will be contacted directly to complete the process. You will be informed of the exact terms associated with the approval as well as repayment expectations. Additional conditions will also be revealed and the role of the guarantor is clearly defined.
Both you and the guarantor will need to sign the agreement. This confirms that all parties are fully aware of the terms and conditions associated with the loan. Once the signatures are complete, and the document is returned to the lender, arrangements will be made to transfer the agreed upon funds to the designated bank account listed within the agreement.
Then, you can use the funds for the designated purpose and prepare to meet the repayment terms as agreed.