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The loan qualifications for payday loans and mortgage loans are considerably different. However, considering the maximum loan amounts associated with these loans, these differences should not be surprising. While payday loans are often limited to a maximum of approximately $300 to $1,500, mortgage loans may be limited to hundreds of thousands of dollars or even millions of dollars depending on the applicants income, assets, debt-to-income ratio and credit history. Also, it should not be surprising that the loan application for a mortgage loan is much more involved than a loan application for a payday loan.
The loan application for a payday loan can often be completed by the applicant in a matter of minutes and the loan may be processed and approved in as little as 24 hours. The applicant is only required to provide basic information regarding his identity, employment status and bank information. However, an application for a mortgage loan is considerably more involved and applicants are required to provide much more information including employment information, tax information, pay stubs, bank statements, information on current debts and credit history information.
|Jennifer Mathes, Ph.D.|