Anybody attempting to purchase a property, be it land or a house, knows the frustration of securing funding for the transaction. Purchasing property by using financing is difficult. Traditional mortgage services can be challenging to obtain, especially in certain economic situations. With fluctuations in the housing market, and with mortgage lenders, it may be near impossible for some purchasers to complete the transaction using the traditional methods.
For those who are looking to make short-term investments in a property, or for those who have equity but need to obtain a large amount of money in a short amount of time, it may be easier and faster to obtain the funds using a private hard money mortgage lender for the following reasons.
Quick turnaround and distribution of funds
Traditional mortgages take a long time to process. From finding the property to receiving the keys at the closing, the process can take weeks, even months. When using a private hard money mortgage lender, agreements can be drawn quickly. Many people who use this method to obtain financing have funds within weeks, sometimes even days.
Less stringent financial requirements
Traditional mortgages require a lot of time, effort, and documentation. The process starts with ensuring the borrower has excellent credit. In some cases, a business deal or property purchase may be what’s necessary to repair someone’s financial situation. In this case, a bank will say no, and a private hard money mortgage lender may say yes.
Flexible terms and conditions
As opposed to the strict terms offered by traditional lenders, the hard money mortgage industry honors a commitment to flexible terms. Various offers can be approved depending on equity, down payment, interest rates, and repayment terms.
Private cash loan specialists often prefer to work with local clients. Unlike working with a faceless, national or international brand, private lenders are often in tune with a local community and its needs.
By using private commercial mortgage lenders, borrowers can take control of their transaction in a way that helps them close deals faster.