If you get your funding from a non-institutional lender, then you will be said to be having a hard money loan. It is your responsibility to make sure that you are working with a reputable and reliable hard money lender. If you are looking to acquire the funds without much hassle and complications, be sure to first ascertain the legality of the lender that you are about to get involved with. In this article, you will get to know and understand the indispensable benefits of hard money lending; especially for the borrowers.
With the hard money lenders, you never have to wait forever for your application to be approved; there is the aspect of speed and immediacy. When making the comparison, you notice that the financing institutions could take up to twenty days to approve your loan while the hard money lenders take a day or two. Even when there are the rules and regulations on the interests and charges, you will find that a hard money lender might be one percent higher or lower than the other; talk to them and ascertain their workability. It is critical for you to ask for the requirements before you begin signing the agreement.
As a borrower who has chosen the hard money loans, you will notice that there is the flexibility which essentially means that you can choose your repayment schedule, customized one for you. With the large institutions, you find that you do have that freedom and that could be a barrier to you. There is fairness that comes in with being able to decide and customize your repayment plan. Additionally, you will notice that there are no prepayment penalties for you; you can pay even before the maturation date.
It is crucial for you to understand that the hard money loan application carried minimal requirements. When a trade has minimal terms and requirements, then automatically, there is reduced paperwork. It is critical for you to know and understand that the money lenders first assess the value of the asset presented before giving you the loan. After the value has been assessed and the application goes through, then you get your money; it is an easy, smooth and fast way to get funding especially in dire times of need.
After you have understood the benefits of the hard money loans and want to take one, you need to know that some of them will need to go through your credit history. However, it is important for you to converse with your lender and know how they operate.