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Is An Auto Loan Easier To Obtain Than A Home Loan?
An auto loan is definitely easier to obtain than a home loan
.When you apply for a mortgage there are a number of factors that come into consideration by a lender. They're going to look at your credit history (and the score itself) very carefully. They're also going to look at your down payment on the house, which should ideally be at twenty percent of the purchase price for the property you're looking to buy. They're also going to look at how long you've been employed, your income, and how generally stable you seem.
An auto loan lender is also going to look at these things, but less critically than they would for a mortgage, in part because the loan is for a lesser amount of money. While your credit history is still important, they'll be a little more lenient than they would with real estate. The better your credit is, however, the lower interest rate you will be offered.
Other than your credit they will also look at any kind of down payment you can make on the vehicle and your current employment. They will look at both your income to see if they think you can afford your monthly payments, and how long you've been employed and at your current residence to see how stable you appear. Of course, if you have excellent credit (a score over 700) it's likely these other factors will become a lot less important.
If your credit is not so great there are still options. Your interest rate will get a little bit higher the farther down the scale you fall. If you're at risk of not being accepted for an auto loan there are other things you can do to improve your chances, such as find a cosigner to sign on for you.
Because of all these options available to make it happen an auto loan is easier to obtain than a home loan.
by: Jennifer Quilter