Here’s what you need to know about mortgage loan
Do you have an unexpected release that you couldn’t anticipate? Need money urgently, but don’t know where to get it? It is a good idea to have a small emergency reserve for these cases, but we know that unfortunately, this is not always possible. A mortgage loan offers a solution in these situations. We looked at the conditions.
Mortgage loan – if a bank loan is not an option
Bank credit is not available to those who do not meet any of the conditions. Here are the most common reasons for rejection:
- Your salary is not high enough: when applying for a loan, you must prove that you have regular monthly net income. If this amount is below the expected minimum, you will probably not get a loan.
- Invalid documents submitted: The bank may reject your credit application even if you are unable to provide the required documents.
- You are on the KHR Negative Debtor List: If you are on the Central Credit Information Center’s negative debtor list, you can forget about credit at almost all banks. If you would like to know how to get a loan as a KHR client, click here to read the article we wrote on this topic.
Pawnshops will not check your income and your KHR list and even ask for your ID card for a certain amount. Of course, this flexibility comes at a price: let’s see what happens when you apply for a mortgage.
How Does a Mortgage Loan Work?
Applying for a mortgage is basically a swap where you exchange one or more valuables for cash for a set amount of time, which you can get in cash or by depositing in your checking account – as you feel comfortable. In short, you can expect the following when you visit a pawnshop for a mortgage loan:
- You bring the jewelry or the item you want to borrow in the pawnshop.
- An estimator examines the subject and, at the end of the estimation, gives you a quote.
- If you accept the offer, clarify the conditions and the pawnshop will pay you the loan. You will receive a lien that you must keep until the end of the term.
- If you repay the loan at the end of the term, you will receive a receipt and return the pledged object.
This sounds very simple, but it is more complicated and there are details of the agreement that if you do not pay attention, the pawnshop can add extra costs and in the worst case you may lose your pawn.
What can you bring into the pawnshop?
Your pawnshop selects exactly what valuables are being lent, but the following articles are generally accepted:
- gold jewelry, watches, ornaments, coins or investment gold blocks
- silver jewelry, watch, ornaments, coin
- precious stones (cut diamonds, rubies, sapphires, emeralds, etc.)
- technical articles: The younger the technical article, the greater your chances of being credited by the pawnshop. It is important that large items (such as a washing machine or refrigerator, etc.) are generally not accepted by pawnshops, nor is it a pledge option if you wish to submit an item purchased from a commodity loan.
- works of art, paintings, porcelain
As with personal loans, the most important indicator when comparing the cost of a loan is the APR, which is the percentage of the total cost of a loan relative to the total amount of the loan, expressed as a percentage. APR includes management costs and interest.