Things You Should Know About Hard Money Lenders
Category : Hard Money Loans
If your are wondering how you can get a quick money, then you should consider applying for hard money. Hard money lenders are non-traditional banks who offer loans to property owners in exchange of money. Their terms and conditions are much more relaxed, however the rate of interest & fees charged is high as compare to traditional banks or financial institutes. The main criteria relies on whether there will be enough equity in their subject property that they can foreclose and still turn a profit. Anyone who has a pending foreclosure, bad credit or income that is difficult to prove may qualify for this type of loan. Since these lenders do not rely on the creditworthiness of the borrower, they ensure that if the borrower defaults then there are sufficient equity in the property over and above the amount of the loan.
Following are some of the things that should be kept in mind before approaching a hard money lenders.
1) Most hard money loans are short term loans so you need to make a exit plan before approaching the lenders.
2) Since the interest rates and terms are quite high and your real estate asset will be used to secure the loan, it is always good to have an exit plan.
3) Try to improve your credit score by paying off your debts so that you have a back up for refinance to pay off.
4) Go for a thorough research before locating a hard money lender. Select the lenders according to your needs. Once you provide your details about your loan request, the lenders will themselves contact you.