There are many reasons why you could have your loan declined by our risk analysts…
Gap Equity Loans performs due diligence on a property to accurately determine how to refinance your loan. The more we understand your property, location and your current situation, the faster and easier we can facilitate a loan for you through our lender network.
People will try many things in order to get a loan. Sometimes they’ll send us old pictures of their property when it was in better shape. Other times they’ll bend the truth a little about what they paid for their property a few years ago. The list of things that people have tried over the years is actually a long one!
Let’s be clear though — we have checks and balances for all these scenarios. Truth be told, honesty is the quickest way to get a loan with us. We are not interested in taking back properties, as we have had no foreclosures to date.
There is a reason you are coming to us for a loan and not to the bank. We are here to provide loans and refinance loans that are coming or have come due.
Refinance Your Loan With Us
A lot of our business comes from refinancing loans. We do like to see that you are current on your payments or at least have had a good (if not perfect) track record. Perhaps your loan term has expired, and your current lender would like their funds returned instead of renewing the loan. Perhaps you are looking to save money with a lower interest rate.
Whatever the case may be, we will try to help you and even offer alternative ways of refinancing your loan. Often people will not tell us that they are behind on their condo fees or property taxes. Tell us, it’s OK! We can make sure to have those paid, with special disbursements from the loan amount during closing.
For us to refinance your loan can be easier than other loans. You’ve likely already gathered most of the documentation for your previous lender. We would just need to verify and update the information. Having to refinance your loan may have nothing to do with you as a borrower. It could simply mean that the previous lender has other plans for the money, or his situation has changed in one way or another.
Pay Down Your Principal When You Can
We strongly recommend though that you try to pay down some of the loan principal over the course of the term. There is a good chance that you may already be at 50% Loan to Value, meaning that your credit with most private lenders is maxed out already. That is why it is a good idea to pay down at least 10% or more because a loan renewal means costs, which makes the loan riskier if the total loan amount goes up. More risk equates to higher interest rates.
So, if you find yourself with some surplus cash from a possible inheritance, the sale of a car, or another kind of windfall, do yourself a favor and pay down a portion of the loan. You will sleep much better, especially when the loan is coming due in a couple of months and you are wondering what is going to happen next.
Contact us today so we can help show you how to refinance your loan!