If you are thinking about taking out a personal loan to consolidate your debt, make a home improvement, or pay for a wedding, an experienced personal loan lender will take you through every step of the process. You can apply with a local lender, a large national bank, or even with online-only lenders. The application process will be similar, but there may be a difference in the quality of service you receive.
Many personal loan lenders will offer personal loans from $1,000 to $25,000, but you may be able to find lower minimums and higher maximum amounts. Your credit score will be a primary factor in determining the loan amount for which you will be approved.
Once you select the personal loan lender that is a good fit for you, here is what you can expect:
Apply for a Personal Loan
To apply for a loan, typically you will need to provide the lender with:
- A copy of a valid, government issued photo ID (e.g., driver’s license or passport)
- Social Security numbers for each person whose name will be on the loan
- Proof of residence (e.g., a driver’s license with your current address, a utility bill, or a signed lease)
- Proof of personal and household income (e.g., paystubs or tax returns)
- Your recent tax return and/or copy of bank statements
- Employment status
- Employer name, address, and phone number
- Number of years with the employer
- Whether you rent or own your home
- Your monthly rent or mortgage payment
- Proof of citizenship
- Purpose of the requested loan
Once you’ve filled out the application, you will be required to provide proof of income, which can typically be shown through your most recent pay stubs, self-employment income from your latest income tax forms, pension amount, and/or Social Security and other government benefits. Alimony, child support, separate maintenance income, or any other income is not required to be reported.
Credit Check from Personal Loan Lender
Using your social security number, the lender will conduct a hard credit card inquiry, which can affect your credit score. They will look at your current credit report and credit score. During the process, they may want to go over any debts you have to make sure they are accurate. Be prepared to explain the reasons for any late payments on credit cards or other bills.
Debt-to-Income Ratio Is Important for Personal Loans
During the application review process, the lender will also determine your debt-to-income ratio, which is calculated by dividing the monthly amount of your debt payments by your gross monthly income.
Receive Your Personal Loan Approval
If you qualify, you will receive an official loan offer from the lender. The lender may approve you for a certain loan amount based on your income and credit history, but this doesn’t mean you have to accept the maximum amount offered. You can ask your lender or use a personal loan calculator to determine what your monthly payments will be based on the loan amount, interest rate, and length of time to repay the loan. A loan with longer repayment terms will most likely have a lower monthly payment, but you may pay more in interest over time. You should always carefully review the terms and conditions of any loan offer before accepting. You should receive a decision on whether or not your loan is approved within several days of applying.
Great Customer Service from Personal Loan Lender
Take note of how well the lender communicates with you and answers all your questions. Quality lenders should be easy to work with and keep you updated throughout the application process.
Looking for a local lender who understands your specific needs? Contact Mariner Finance today to apply for a personal loan.