When the applicant has a good credit record, can provide proof of repayment ability and has no debt, it is easy to be approved even if there is no guarantor.
If the applicant has a bad credit record, but can increase the down payment ratio, or other financial proof, adding a guarantor will make it easier to approve the loan.
However, if the applicant has a high debt ratio, poor credit information and weak repayment ability, even if there is a guarantor, the bank may not approve it.
What conditions do loan guarantors need?
When applying for the conditions of such a guarantor, three points are more important:
1. The loan applicant must have a fixed residence or business premises.
2, business license and business license, a stable guarantor and the ability to repay the principal and interest;
It is also important for entrepreneurs to have their own funds for their projects.
Only those who meet the above conditions can apply to the bank, and the materials to be provided when applying mainly include: proof of marital status, personal or family income and property status and other repayment ability documents; Relevant agreements and contracts in the use of loans; Guarantee materials, involving the ownership certificate and list of collateral or pledge, and the appraisal report of collateral (pledge) issued by the appraisal department recognized by the bank.
In addition to written materials, there must be collateral. There are many mortgage methods, such as chattel and real estate mortgage, time deposit certificate pledge, securities pledge, movable property pledge with strong liquidity, qualified guarantor guarantee, etc. The payment amount is determined according to the specific guarantee method.
What is the responsibility of the mortgage guarantor?
If the borrower fails to repay the loan, the guarantor will bear the repayment responsibility. You must think carefully before accepting to be a guarantor. The reason is that when you sign as a monetary debt guarantee, you will be personally responsible for paying off the debt to the lending institution. Even if the relationship between the guarantor and the debtor changes, such as the husband's guarantee for his wife's house purchase loan, and the two divorce, the guarantee is still valid without being affected by the dissolution of the marriage relationship.
In other words, once a guarantor signs as a guarantor, he will always be a guarantor, unless the borrower is approved by the lending institution to cancel the guarantor qualification.
The mortgage guarantor shall bear all the responsibilities. Under normal circumstances, the borrower repays the loan by himself, and the guarantor does not have to worry about it. However, the loan amount and monthly payment borrowed by the borrower will generally be displayed in the credit record of the guarantor.
When the guarantor needs to apply for any loan by himself, the debt he guarantees will be regarded as his own debt, and usually the lending institution will include it in the debt, which may affect the loan amount of the guarantor.