Why Loans Aren’t As Bad As You Think
There is a way you can borrow money without using the traditional mortgage lenders and that is what is referred to as hard money. As long as you have collateral, an individual or even an investor will offer you the money you want. In the event that you need the money within a short period of time then hard money is the best option. If the traditional lenders have been taking you in circles in matters to do with loan approval then you will find this option amazing. Traditional lenders are famous for the long duration it takes for them to approve loans not to mention the kind of requirements which have to be fulfilled before the loan is approved. These are issues that will not give your sleepless if you opt for hard money. Your ability to secure the loan you want will be determined by the collateral you are providing for the loan. You won’t be bothered to confirm whether you can repay the loan or not.
The most important aspect that is considered when you are getting a hard money loan is the value of the collateral you are providing. The repayment period can be just a year or 5 years because these are usually short-term loans. First of all, you will enjoy the speed at which hard money is processed. Once the value of the collateral is determined the approval process will be handled which is why you can get the money quickly. It is not like the lenders are happy repossessing your property and they always hope for the borrowers to pay back the money on time. The beauty of it is that no one will bother you too much about bank statements or income in getting hard money but these are some of the steps that make loan processing take ages when you opt for traditional mortgage lenders. Traditional lenders can have you losing out on many great investment opportunities because they took too much time before approving the loan.
Additionally, hard money comes with a lot of flexibility. Traditional lenders are very rigid but the great thing about hard money agreements is that they are based on a particular situation. The underwriting process in the case of hard money is done per case rather than following a standardized one as is the case with traditional lenders. This means you can negotiate with the lender on various issues including repayment schedules. Also, the lenders are understanding individuals who will be willing to listen if you have a problem. The fast and high rate of approval is a huge bonus too which is why many people are happy with this option.