What are the risks of being a loan guarantor?

If your friend still can't afford the loan, the bank will ask you to help find someone to repay the loan. If it really can't be paid, the bank will execute the house or ask you to repay the loan. You can also do this while you are guaranteeing Make a loan. The guarantee period refers to the time your friend starts the loan until the loan is paid off. During this period, you have the obligation to be a guarantor. You have to decide whether you are guaranteeing your friend or helping him borrow the loan as a borrower. If you are a guarantor, If he borrows a loan, it is equivalent to a loan you borrowed. If you don't repay the money, you will have a bad credit record, which will really affect your life. If you vouch for it, it may also be reflected in your credit report. It is recommended that you do not guarantee it if you are not very sure.

What are the risks of applying for a second mortgage loan?

Risks of a second mortgage loan:

1. High loan interest rates:

According to the current situation, we know that second mortgage loans are under greater pressure and risk due to banks or small lending institutions. Therefore, when applying for a second mortgage loan, the loan interest rate is always very high, and the loan interest rate is calculated based on the month. Under normal circumstances, the monthly loan interest rate for a second mortgage loan is about 5% of the loan amount.

2. The application amount is not high:

Although the second mortgage procedure is simple, the amount that can be applied for is not high. According to regulations, the amount of a second mortgage cannot be more than the original value of the mortgage minus the amount of the original loan. Under normal circumstances, the loan that can be applied for will be greatly discounted minus the amount of the original loan.

3. The repayment date is not negotiable during the repayment process:

Bank requirements for second mortgage loans are relatively strict during the repayment process. If the loan cannot be repaid, the bank or company will immediately auction the second mortgage property without giving the mortgagor a chance to negotiate. Because of this, applicants need to pay attention to the repayment time and make a repayment plan in advance.

Extended information:

Documents required for applying for a second mortgage loan:

Mainly based on the specific requirements of the construction committee of each region, usually only the applicant’s real estate certificate is required (Real estate certificate or house ownership certificate, land use right certificate or house purchase contract and invoice), identity documents (resident ID card, military officer ID card, etc.). Depending on the time of payment and the processing time of other rights certificates in each district or county, under normal circumstances, the loan can be released on the same day that the other rights certificates are received.

Second mortgage property requirements:

Each bank has different regulations on mortgage properties. There will be corresponding requirements for the year of construction of the property and the area where it is located. For example, for properties that were built before 1995, Properties in some remote suburban counties have more restrictions and lower loan-to-value ratios.

However, there are no restrictions on the age or location of the property. Almost any property that can be registered as a mortgage can be reasonably evaluated based on the price of similar properties for sale in the market at that time, so that the lender can obtain Higher loan ratio than banks.