Loans For Retired Military
Financial institutions offering loans for retired military personnel are helping lifelong soldiers achieve their goals of owning a home, breaking the debt cycle or taking that much needed vacation. This type of financing is not just available for those who dedicated their life to military service, but they are also offered to current service members and employees of the Department of Defense. Lending that has been specially designed for individuals who have served in the armed services for 20 years or more, or who are currently dedicating their lives to serving the country does not disregard a person's credit, however, it does allow the individual to be considered on criteria other than revolving debt and car payments. Credit scores, then, or only one of the many considerations of the lender when reviewing loans for veterans or life long service personnel. This allows for a fair playing field to compensate this service person whose poor credit is the result of multiple deployments; or it at least rewards for having risked their lives in combat situations. "No man that warreth entangleth himself with the affairs of this life; that he may please him who hath chosen him to be a soldier." (2 Timothy 2:4)
If an individual is currently serving in the armed services, retired after at least 20 years of service or is an employee of the Dept of Defense, applying for one of the loans for retired military is recommended. Because these loans consider credit, but not as heavily as other types of loans, a person who has been or is in a branch of the armed services is more likely to get a favorable interest rate, fewer fees or be required less of a down payment than if she sought standard financing packages for her loan. The financial institutions offering loans for retired military still set standards as to the loan to income ratio when the amount of the loan is not decided by the collateral, like the price of the home or the cost of a car. When there is no clearly defined collateral, the service person is encouraged by the lender to obtain a loan for the amount of money that they desire to the medical emergency, special occasion, debt reduction or vacation that they desire.
Financial institutions offering loans for retired military personnel will determine the amount of the loan using the aforementioned information, but will also factor in the borrower's rank, the current amount of their outstanding debt, years of service and perceived ability to make the payments. Pre approval over the phone or through the Internet is rarely available, because the financial institutions want to take into account all of the factors listed above. Soldiers looking for veteran or military financing should visit the financial institution and submit an application. The retired member of the armed services should be advised to bring all necessary information when them to help in completing the application. It may be necessary to submit credit card bills, loan booklets for a house or automobiles and their credit report, if they have it. If the individual does not have a copy of his credit report, including his credit score, the financial institution can easily run it from his social security number and his full name. The length of the approval process varies, but is usually less than two weeks.
If banking professionals deny the applications for loans for retired military, the service person should inquire as to the reason why. Perhaps the requested loan amount is simply too high. By asking for only eighty percent of the previously requested amount, maybe the retired soldier can obtain the loan he desires. If the debt to income ratio is too high, paying off revolving debt accounts, such as credit cards, can increase the likelihood that these individuals will then be given the loans for retired military professionals that they desire. Obviously, the applicant cannot change her rank or the number of years that she was in the military, but everything else affecting the loan approval can be improved or changed.
As with most retired individuals, former lifelong military personnel live on a fixed income. It would behoove potential borrowers of a loan for retired military to ask for an estimated payment amount. These figures are not set in stone, but they can provide a rough estimate to allow the potential borrower to determine if the payments are manageable. If the estimates given by the lending institution are greater than the applicant's ability to pay, then the borrower has a few options. If the lender allows, the applicant can request a longer term for the loan. In extending the repayment period for loans for retired military personnel, the member of the armed services can lower the monthly payments, while still getting the overall desired loan amount.
However, if the lender does not approve a longer repayment period, or the monthly payments are still too high, the applicant can request a smaller loan amount. In lowering the principal amount of the lending package, the borrower can have smaller monthly payments over the life of the loan. If the retired member of the armed services suspects that the lender's interest rates are higher than the competitors, the borrower is welcome to search elsewhere for their financing needs. There are thousands of lenders who offer loans for retired military personnel. As a result, the applicant is wise to shop around for the lending package that has the interest rate, fees and conditions that best suit his financial needs. In many cases, these funds can be available for the veteran within twenty-four or forty-eight hours of being approved for financing.