When asked if entities can deny a pre-granted loan, the answer is very simple: until the contract is legally signed, obviously they can deny it. Given this situation, in this article we want to clarify some terms and some situations in which financing applicants can be found.
What are pre-approved loans , what reasons lead to a denied loan or what to do about a denied mortgage after appraising the property are some of the questions that we are going to answer today.
What are pre-granted loans?
Pre-arranged loans are those that banks offer to people who are already their customers. They are clients whose profiles are already well known, successfully complete their credit risk studies and, therefore, are target clients who do want to leave money with them.
Characteristics of pre-granted loans
They are not for everyone. They are only offered to those clients that the bank already knows who have an adequate profile.
The amounts are usually less than for consumer loans. They are accustomed to oscillate between 2000 and 20 thousand dollars, always depending on their solvency study and assets deposited in their entity.
The concession is usually agile. This is so because the entity has previously made a study of the client in question, without the client requesting it.
The conditions are already fixed and cannot be negotiated.
Many people wonder if the same entity that has offered them the product can later deny them the pre-granted loan. The answer, as we already advanced at the beginning of the article, is yes.
It is true that, before offering a pre-approved loan, the bank or credit institution carries out some preliminary studies. But this does not mean that once the product is accepted by the customer, no more exhaustive checks are carried out that end up in a denied loan.
Denied loan: the most common reasons
Getting a loan is sometimes not so easy. And much less if it is requested from a traditional bank. There are many reasons that can lead the bank to deny a loan. We are going to tell you the most common ones:
Most banks are wary of both very young and very old applicants. If you are under 23 or over 65, this may mean that you are denied the loan. Take a look at our article on retiree loans for more details and to find the solution you are looking for.
Check in delinquency files
Many loans are denied for this reason. Not appearing in files is one of the mandatory requirements for traditional banks to grant financing. In this article we tell you how to get out of debtors list and we show you that with financial companies getting financing is possible.
Credit history and solvency
Before granting you a loan, they will check, on the one hand, that you have a clean credit history. In other words, up to now you have been able to return on time and without problems all the monthly installments of your previous loans.
In addition, they will also ensure that your level of indebtedness never exceeds 35% of your total income. If you want to know more about the requirements to fulfill when applying for a loan, don’t miss this article from our blog.
Most of the time an unemployed person applies for a loan, it is denied. The pre-granted loans are totally non-existent for them. Fortunately, there are financiers who can afford to be less demanding and find alternative solutions for their clients. In this article on our blog we already talked about loans for the unemployed.
In short, the reasons for a denied loan can be many and varied. But, as you will have seen, all is not lost. With entities you can find the financing solution you are looking for.