Author Archives: Shawn Molem

Top 4 Advantages of Private Mortgage Loans

Private money loans are also known as hard money and it usually comes from private investors or private lending company such as Magna Capital Group, Inc who offers loan to home buyers to purchase a specific property. The problem for most borrowers in recent years is the strict lending requirements imposed by traditional lenders. So, if you’re having trouble qualifying for a conventional mortgage loan, a private mortgage loan would be the best option for you.

Why Private Mortgage Loans?

You would use a private mortgage under any of the following circumstances:

• You want to buy an unconventional property that a prime lender or bank won’t finance.
• You need fund quickly and don’t want to wait for a long approval process.
• The cause of your bad credit history, you are being turned down by conventional lenders.
• You only need a short term loan.
• You have non-confirmable income that is preventing you from getting a traditional mortgage loan.

Here are the top 4 advantages of private mortgage loans:

1. Easy to qualify:

Private mortgage loans are easy to qualify than traditional mortgage loans. If you have less than the perfect credit score or cannot provide proof of your steady income, private mortgage loans could be a great option for you. A hard money loan is not “person” focused, it’s “property” focused. So, a person with poor credit can also obtain a hard money loan if the project shows a likely profit.

2. Great for Flippers:

Private mortgage loans are best fit for flippers. If you plan to sell or “flip” the house within a short time-frame, or want to be able to qualify for a conventional refinance within a few months after acquiring the property, you might consider such a short-term loan. Flippers use private mortgage loans to make extensive renovations in a short time period to boost the value of their home as it helps them to sell or refinance the property fairly quickly.

3. Geared toward ‘fixer-upper’ properties:

A damaged home cannot qualify for the conventional mortgages, it doesn’t matter that how good the borrower’s credit is. In this case, private money can play an important role for you. A private money lender can provide financing to get the house in sellable condition, and then “flip” the house.

4. Short Approval Process:

Private money lenders don’t need a long drawn-out loan process like a conventional mortgage does. The approval process for private mortgage loans often takes just a couple of weeks, as opposed, it takes 30 to 45 days for a conventional loan. Getting a loan with quick approval is a great advantage for many borrowers as they believe quick funding is a good trade-off for higher interest rates.

The Bottom Line

If you have a house that you want to rehab, and you believe that you could improve it enough to boost its worth in a short period of time that would allow you to pay off a private loan and replace it with a conventional refinance or sale, then getting a private mortgage loan is a viable option for you.

Magna Capital Group, Inc is a well-known and reliable private hard money lender in California, USA. We provide the best and flexible mortgage loan option that suits your real estate needs. You can get benefits of our wide range of loan options such as hard money loan programs, residential loans as well as commercial loans.

So what are you waiting? just grab the opportunity and fulfill your all kind of financial needs with Magna Capital Group, Inc. Call (310) 734 4044 or Email us at info@magnaloans.com or visit our website www.magnaloans.com.

Top 5 Tips For Buying A New Home

Buying a new home is a huge opportunity in which you can turn your dreams of homeownership into the reality. Having your own home means you can paint the walls with your favorite color, plant flowers and vegetables if you choose and plant the seed for an investment in your future. There are many stages involved while buying a new property e.g. finding a lender, then going shopping, making the offer, setting up inspections, getting insurance, working with a title company, and the final step closing the deal. If you are a first-time homebuyer and looking to buy a home in the next 6-12 months, you should start preparing from now.

1. Hire An Real State Agent

You can save your lots of time via hiring a good real estate agent. They will be willing to answer your questions and assist you in the process where needed. You should be able to reach your agent at any time and get the answer to your question quickly. Your agent should always be willing and able to help you. Magna Capital Group, Inc steers you in the right direction and provides all kinds of resources to make your dreams come true. For any kinds of assistance, call now at (310) 734-4044.

2. Find A Lender For Loan

Finding a lender is the most important part of buying a new home. It’s smarter to get loan preapproval in advance before buying a home. This way you know for certain how much home to buy. You can contact a lender to determine how much money you will have to spend or how much you can afford. There is no point shopping for a home if you cannot buy one. It wouldn’t be wise to look at homes over $500,000 if your lender will only loan you $275,000. It would be very disappointing to find the home of your dreams and then find out you cannot get it. So start with finding out what you will be able to finance and then you can go shopping for homes in that price range.

All lenders are not same so find one that is going to be helpful and informative to you. Your lender should provide you with information on what you are eligible for and if you are not eligible he should be able to tell you what you need to do to become eligible. Magna Capital Group, Inc is a well-known lending company in California, USA which offers various loan programs and a variety of down payment assistance programs to eligible first-time homebuyers. If you’d like to contact a Magna Capital Group, Inc, call (310) 734-4044 or visit www.magnaloans.com.

3. Find A Home to Buy

Finding the right home is not always an easy task. It can be an overwhelming process and emotionally draining. You are advised to schedule a maximum of 5 homes at a time because any more than that will make your head spin. Most of the homebuyers conduct a lot of research online before ever stepping foot in a home. Buyers spend an average of 5 to 7 weeks to figure out where they want to live. But once the neighborhood is selected, most buyers end up buying a home after 3 or 4 home tours.

4. Negotiate The Offer

Sellers can ask you any price they want, it doesn’t mean the home will sell at their required price. Your agent will provide comparable sales and examine the pending sales. Comparable sales are similar type homes in the same condition and location that have sold within the past couple of months. Pending sales will become the comparable sales by the time your home closes. You may need to pay the higher price if many buyers are interested in buying the same property. Magna Capital Group, Inc can give you a reasonable price range and help to manage your expectations. We know there is always more to an offer than its price, but the price is paramount.

5. Do A Home Inspection

There are a lot of older homes out there. You might not want to be locked into buying a home that has a faulty foundation. In some states, a home inspection is conducted before buyers make a purchase offer. In other states, a home inspection is a contract contingency. A contract contingency means a buyer has the right to cancel the contract. Sellers are generally not required to make repairs if problems are discovered during a home inspection. A home inspection is for the buyer’s edification. However, sometimes when a buyer gives a request for repair to the seller, rather than blow the deal, the seller will often agree to make a repair.

Conclusion
Buying a new home requires lots of money and time so you need proper financing method and planning to make your dream home into the reality.

Magna Capital Group, Inc offers home financing at minimum requirements. Our loan programs provide you fast funding and flexible loan terms that help you to reach your real estate goals. For more information about hard money lending, visit our website MagnaLoans.Com or call us today on (310) 734-4044 or send us an email at info@magnaloans.com