Having a job in the military is unlike having a job anywhere else. The pay is steady but not quite up to the real demands of military life. That is why there is a class of lenders who specialize in military loans. Many of these lenders are staffed by former military personnel so they know the situation of the military borrower first-hand.
No matter what kind of loan you are seeking, you will be looking for the lowest interest rates and the most comfortable repayment terms. And, there are scofflaws in every business; you have to be careful about whom you choose for a lender. Sometimes various military loans are referred to by different names: disaster relief loan, bereavement loan, career service loan, leadership VIP loan, premier loan and senior leadership VIP loan.
Preparing to Apply for a Military Loan
You first step should be to build a budget. You may want to get one of the free budget calculators available online. You need to arrive at a good income-to-debt ratio. After you have subtracted all your necessary monthly obligations, do you have enough money left over to make a monthly payment without putting yourself into hardship? Your lender may consider your credit scores, but your salary and debts will ultimately be the determining factor. You might want to go ahead and pull your credit scores so you can see how a lender looks at you financially and to see if there are any errors.
You will need some documentation when you apply for a military loan. Have it ready to go so as not to delay your application process. A lender will want to see your military identification along with proof of your rank and salary. You will need to present proof of residence or duty station. You will also require a bank account; checking with direct deposit is preferred so the lender can put the loan funds directly into your account. Since you are making the application online, these documents can usually be scanned or faxed to the lender.
Shopping for a Military Loan
Point your browser to Military Loans and you will be pleased to see pages and pages of lenders who may be willing to lend to you. Visit their sites and find four or five who have interest rates, loan amounts and repayment terms that look good to you. Then check each of those lenders with the online Better Business Bureau listings. You should find each lender graded and see feedback from previous customers. You should also check online personal finance forums and ask others about experiences they have had with certain lenders. Be sure any website where you divulge personal or financial information is secure.
Military loans are offered two ways – secured and unsecured. A secured loan has the borrower put up valuable property such as real estate or a car or boat as collateral on the loan. Should you default on the loan the lender can seize the property and sell it to cover the cost of the loan. These loans usually grant larger loan amounts with lower interest rates. Unsecured loans have only your promise and your signature. Since these loans present more risk, the loan amounts tend to be smaller and the interest rates higher.
Military Life Sometimes Similar to Civilian Life
Military folks, just like civilian folks, can get into a situation where they need or want a little extra cash. A military loan exists for that purpose. Retirees and other government employed folks can find loans similar to military loans. With a little care, you should be able to enjoy the benefits of a military loan without all the hassle a civilian might face.