Assessing your borrowing capacity to access Equity Release can be an exciting yet time consuming process, especially for seniors. But without the right tools like online assessment for your potential Equity Release amount, you won’t know your borrowing capacity and may not be able to make an offer on a property confidently.
Eligible borrowers may be hoping to speed up the process by avoiding going into a branch to apply for a reverse mortgage. This is where online application comes in, enabling potential borrowers to gain immediate access to an estimated Equity Release amount.
If you meet the criteria for eligibility set by the Equity Release lender, you should be able to apply based on an indicative amount through the lender’s website.
Benefits of online assessment
One of the many benefits of getting an online assessment borrowing amount is, as opposed to visiting a branch, the speed of the process.
Via online assessment processes, your application and documents can be read and scanned quickly. This means that most lenders can give you results in 15 minutes.
While getting an online assessment to access Equity Release may only take 15 minutes, given you have your documents ready to go, the estimate is not absolute. That’s because your personal financial situation may change at any time, as well as the reverse mortgage market itself. For example, the market may have shifted, where interest rates may have increased or decreased.
Remember that an assessment or estimation is different from actual property valuation and other proceeding processes.
Reasons your application might be declined
While applying for an Equity Release online may be a straight-forward process, there are instances where your application may not go through.
Some reasons you were declined usually involve your documents, issues with the property, or you no longer meet the eligibility criteria. Furthermore:
- The lender is unable to verify your credentials or identification documents.
- Your property does not meet the loan-to-value ratio (LVR) requirements.
- The property is determined to be an unacceptable type.
- Your financial situation changes.
Before applying online to access Equity Release, check that your documentation is up-to-date and in a readable format, acceptable to the lender. If there are any inconsistencies on your application, it may be rejected.
It’s also vital to review the lender’s eligibility criteria beforehand. Not only does it help improve your chances of approval, it also reduces the risk of rejection, which might hurt your credit score.
If you liked our “Get Online Assessment Of Your Borrowing Capacity To Access Equity Release” and took away some useful information, check this space regularly for more updates on reverse mortgages and equity releases.