Nowadays, lenders have imposed stringent lending requirements that make it harder for mortgage borrowers to qualify for loans. If you are facing challenges when applying for a mortgage, you may choose to borrow from a private lender. Private investors offer hard money loans or private loans for purchasing real estate to people who want to buy properties. One way of finding Atlanta private lenders for real estate is by asking your family members or friends to give you recommendations of such lenders. You can also join a real estate investment society in Atlanta in order to find such lenders.
Hard money loans are a good option for borrowers who cannot qualify for a traditional mortgage because of a poor credit score, or self employed people who are unable to show proof of steady income. The property acts as security for the loan. Therefore, it is possible for a person to qualify for a loan if the property can be sold at a profit.
The repayment period for hard money loans is much shorter than that of conventional mortgages. The reason for this is that the lenders seek to get quick returns on the money they have loaned out. The loans are set up to be repaid within a few months or years.
Getting a loan that has a repayment period of two years or less can be convenient for several reasons. For instance, you can get such a loan if you are planning to sell the property within a short time frame. This will give you an opportunity to make a profit.
Applying for hard money loan is also ideal when you are expecting to qualify for typical refinance some months after buying the house. You may also apply for this loan when planning to renovate the house to increase its value. After this, you can refinance the house or sell it.
When planning to complete extensive remodeling projects, getting a hard money loan is a wise. This is because it can be difficult for property owners to qualify for a mortgage even if they have good credit scores. Private lenders can give them the loans they need to get a property in the best condition so that they can sell it and make a profit.
The approval process of hard money loans is short. The lender can approve your loan within two or three weeks instead of 30 to 45 days, which often applies when applying for conventional mortgages. It is convenient to have a loan approved quickly, even though you will end up paying higher interest. Private loans have a higher interest rate because people who lack high credit scores can still borrow them.
Hard money loans are a good option for borrowers who cannot qualify for a traditional mortgage because of a poor credit score, or self employed people who are unable to show proof of steady income. The property acts as security for the loan. Therefore, it is possible for a person to qualify for a loan if the property can be sold at a profit.
The repayment period for hard money loans is much shorter than that of conventional mortgages. The reason for this is that the lenders seek to get quick returns on the money they have loaned out. The loans are set up to be repaid within a few months or years.
Getting a loan that has a repayment period of two years or less can be convenient for several reasons. For instance, you can get such a loan if you are planning to sell the property within a short time frame. This will give you an opportunity to make a profit.
Applying for hard money loan is also ideal when you are expecting to qualify for typical refinance some months after buying the house. You may also apply for this loan when planning to renovate the house to increase its value. After this, you can refinance the house or sell it.
When planning to complete extensive remodeling projects, getting a hard money loan is a wise. This is because it can be difficult for property owners to qualify for a mortgage even if they have good credit scores. Private lenders can give them the loans they need to get a property in the best condition so that they can sell it and make a profit.
The approval process of hard money loans is short. The lender can approve your loan within two or three weeks instead of 30 to 45 days, which often applies when applying for conventional mortgages. It is convenient to have a loan approved quickly, even though you will end up paying higher interest. Private loans have a higher interest rate because people who lack high credit scores can still borrow them.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Hard Money Lending options in Atlanta he suggests you click here to learn more.
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