Military Loans – Three Little Qualifications

Jan 23
09:11

2012

Devora Witts

Devora Witts

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Qualifying for a military loan is not that difficult. Meet one of three qualifications, as long as you are Army, Navy, Marines, Air Force, Guard or civil service, and you should have few problems.

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Military People Are DifferentJust as military personnel are different from from civilian folks,Military Loans – Three Little Qualifications Articles military loans are different, too. The same applies for civil service personnel. Lenders know immediately that you have a decent job with a decent salary. Thus, they are able to offer military loans with lower interest rates, more comfortable repayment terms, and without requiring collateral, or valuable property to secure the loan. Low credit scores will not incur an immediate rejection either.Three QualifiersThe basic requirements to land a military loan are not that stringent:One: You must have a designation of a GS-6 or its military pay-grade equivalent.Two: You are retired after 20 or more years of service.Three: You are on active duty, or full employment or you are on active reserve status.The amount of the loan, the interest rates, and terms of repayment will rely heavily on your salary and your debt-to-income ration. Your credit history will be evaluated as well, but it is not often the reason for rejection.Credit HistoryJust as you must prepare a budget before you go shopping for a military loan, you should check your credit so you can understand how a lender sees you in a fiancial sense. And often your credit report will have some discrepancies that can be easily fixed. Though credit will not be that important for approval, it is best to have the cleanest records possible.Debt-to-Income RatioNo matter your credit history, good or bad, the major qualifier will be your debt-to-income ratio. What does this mean? A lender wants to be assured that you will be able to meet your monthly payments. After you meet all your monthly obligations, from your insurance policies to the grocery bills, will you have enough left over to make a new monthly payment? A good rule of thumb is that your monthly or bi-weekly paycheck has at least 40% left over marked as discretionary income. This benchmark can vary from lender to lender.Another Approval BoosterBeing a member or the armed forces or the civil service, the lender knows you have a steady income that will be deposited on time. Another way to ease approval of a military loan is to have your payment automatically deducted from your banking account. This could be the extra boost that will push toward approval. A lender likes to know that monthly payments at a specified timeare always made.Shopping for a Military LoanTraditional brick and mortar financial institutions are not likely to make a small loan – $100 to $1500 –so you have to consider other lenders. Online shopping is a good way to start. Just punch your browser with Military Loan and you will be rewarded with scores of lenders that will be happy to offer you a military loan. You will even be able to shop for the best interest rates and the most comfortable repayment terms. As with any online application, make sure any page where you divulge personal or fiancial information is secure. Also check out prospective lendes by browsing the online listings of the Better Business Bureau or online personal finance forums.World-Wide ConvenienceAnother good thing about online applications is that they can be initiated from anywhere in the world with computer access. And then the funds can be deposited in a stateside account so your family can have immediate access to the funds, often within 24 hours if all goes well.