This isn’t a ‘one size fits all’ question. There are a number of factors that will determine whether or not you get an instant decision on your loan application
First and foremost, the time taken to reach a decision will depend on the lender you apply to. Every lender has their own application and decision-making process, and this will impact on the time you have to wait to receive their decision.
The type of loan you apply for will play a big role in the length of time it takes to receive an answer.
Because personal loans offer smaller sums of money than secured loans, you can often get your answer sooner. Here at Ocean, we provide instant online decisions for personal loan applications.
Homeowner loans deal with larger amounts of money and, as such, pose a greater risk to the lender. Plus, because they’re secured to your home, there’s a greater risk to you too.
Due to this risk, lenders will want to be confident you can manage your repayments and repay your loan, which means they’ll take longer to come to a decision.
Here at Ocean, we act as a broker for secured loans. You can find out if you’ve been accepted for a homeowner loan in principal as soon as you’ve completed our online application form. You will then be required to speak to one of our advisors over the phone to complete your application.
Different lenders will have different application processes. Online applications are generally quicker than offline processes, as there’s less time waiting to speak to people on the phone or by mail.
But be aware that even if you begin your application online, if it is in the interest of both the lender and the borrower, you may need to speak to the lender on the phone or send them information through the post to complete the process.
If you apply for a homeowner loan through Ocean, you’ll need to complete your application offline. One of our advisors will have a chat with you on the phone to check the information in your application, ask a few more questions, and guide you through the loan agreement with your chosen lender in detail.
This is so that both parties are well informed and confident before proceeding.
For personal loan applications with Ocean, the entire application process can be done online.
Lenders carefully analyse all the information provided by loan applicants to create a picture of them and weigh up the risk they present and the likelihood of them affording repayments. This is known as underwriting.
Depending on the system used by your lender, this process can have a knock-on effect on your wait to find out if you’ve been accepted. Elements such as product demand and underwriting resource within the business could have an effect on your wait.
Waiting for a decision?
If you have applied for a loan and the lender in question is unable to give you an instant decision, it might be tempting to apply with other lenders in the meantime.
But this is something you should avoid. Loan applications may appear on your credit history, and applying for lots of lines of credit in a short space of time can make you appear desperate for money. This may put lenders off.
What happens after I’ve received the lender’s decision?
If your application is rejected, don’t panic. There are a number of reasons this could happen, including: your credit history, employment status, annual income and how long you’ve lived at your current address for.