How to find a home loan for a student
A new tool from Discover Home Loans aims to help borrowers who may be struggling with their home mortgage payments.
The tool allows borrowers to enter their credit scores and the loan amount, and then the lender can determine the interest rate and whether it will allow them to borrow up to $5,000 per month.
“We don’t have any data about whether borrowers are using this tool or not,” said Jennifer Osterman, director of consumer lending and consumer finance at Discover Home Loan.
Osterman said Discover has been using the tool for about two years.
The company recently expanded it to include credit scores as well as borrower data from a variety of sources, such as payday lenders.
The borrower can select from multiple categories, including student loans, APYs, student-loan installment loans, and homeowner loans.
Ostermans team also looks for whether a borrower has paid off their loan.
If they haven’t, they can request a credit check and a $25 refund.
If they don’t, Discover will give the borrower a $5 down payment and ask for a payment confirmation.
If the borrower does not have a payment verification or the check clears, they are offered a $1,000 down payment, Ostermays team said.
“There are certain things that you can’t do with this tool, but there are a lot of other things that are available that we feel are really important,” Osterma said.
In an email to Reuters, Discover spokeswoman Mary Luevano said the company doesn’t use credit scores in the lending process.
Oesterman said that while the company does use credit information from third parties, it doesn’t have data from the banks or payday lenders that are part of the Discover Home loan database.
The company said it has made a number of changes since the tool was introduced in March.
For example, borrowers can now choose to be contacted by a phone number if they’re in a crisis.
It also now lets borrowers see the home’s credit score as well.
The loan information has also been updated to show whether the borrower has taken out a home equity line of credit, said Lueva, adding that borrowers can choose whether to view the data online or on the loan application.
For borrowers who have had a major life event, like losing a job, the loan data will include details about when and how much they were in the market, she said.
The loan information can be viewed online and can also be seen by phone, she added.
Oosterman said the tool has also allowed borrowers to make loans without paying off their loans, though she said the service is still in its early stages.
Osters team is working to make the loan information more accurate and complete as the tool is expanded, she explained.
The program was launched by Discover, the nation’s largest student loan lender.
The service offers a variety in terms of the loans available to students, ranging from a monthly payment to a maximum loan amount.
The home loan payment can range from about $2,000 to $6,000, depending on the type of loan and the credit score, Oostermays said.