You can also use non-photo documentation e. If you have a job lined up, you can ask your employer for a non-revocable employment contract, which guarantees employment for a specified amount of time. In other words, start looking for a job far, far away. While the other options are doable by yourself, this strategy requires another person. Missing just one payment can do significant damage to your credit , and defaulting altogether will put a major blot on your credit history.
Be realistic about your ability to cover the monthly payments for the life of the loan. If there's any doubt, consider skipping the loan or borrowing a lower amount you can comfortably repay.
Depending on the nature and volume of your income sources, lenders may consider your unemployment reason for caution, which could cause them to alter their loan offer in several ways, including:. A personal loan , which doesn't require you to secure it with property such as real estate or a car, is the type of loan best suited for getting ready cash quickly.
Personal loans are available from many lenders. A great place to start looking for any loan, unemployed or not, is the financial institution where you have your checking account. Even in a world of automated decision making, an established relationship can still work in your favor. If your preferred institution is a bank, consider applying for a loan at a local credit union as well.
Credit unions often have competitive rates and may also have lower credit score requirements than banks. If they extend a loan offer you want to take, you'll have to become a credit union member before the loan is processed. Membership usually requires an open account with at least a few dollars in it—a small price for a good deal on a loan.
Online financial institutions, including peer-to-peer lending sites , typically provide quick lending decisions, and it's easy to use them to submit multiple applications at once. If your credit is poor, it can make it harder to get approved for a loan. But if you're a little creative, very persistent and willing to accept a higher interest rate, there are ways to get a loan, even with less-than-ideal credit.
If you can wait a few months before applying for a loan, it might also be wise to consider taking steps now to spruce up your credit score. You can't convert a middling score to an excellent one overnight, but depending on your starting score, a few extra points could mean you'll get better deals on loan offers, in terms of interest rates and fees. If you don't qualify for a traditional loan but really need some working cash, the following alternatives could help you get some money to help you with your financial needs:.
Sudden unemployment can be a major source of stress, and a personal loan can help cover expenses so you can focus on job-hunting. Take care to borrow only what you need, and what you're sure you can repay once you're back on solid ground. If your investment income provides you with enough to make monthly mortgage payments and pay for basic living expenses too, you may not have much trouble convincing a mortgage lender to help you become a homebuyer.
The same goes for any other sources of income you might have, whether from a lawsuit settlement, Social Security , alimony, a life insurance policy, a gift or an inheritance.
If you have a non-salary income source that you can rely on as a homeowner, mortgage lenders should be willing to work with you, as long as your credit score and debt-to-income ratio are up to par. We don't know how long the current crisis is going to last and what economic repercussions it will have.
Many experts are already predicting a full-blown recession, during which jobs can easily be lost. As such, you don't want to put yourself in a situation where you sign a mortgage and are liable for monthly payments on it, only to not actually get rehired as expected due to circumstances outside your control. If you are forced to hit pause on your mortgage application due to your job circumstances, don't despair.
There's a strong chance mortgage rates will drop in the coming months, as will home values, so if you hold off on buying right now, you could set yourself up to score a better deal down the line.
Our team of analysts agrees. These 10 real estate plays are the best ways to invest in real estate right now. Find out how you can get started with Real Estate Winners by clicking here. Maurie Backman has been writing about personal finance for years. A firm believer in educating readers without boring them, she … Learn More.
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