When it comes to borrowing money, most people assume they have to approach a local bank or credit union. While these lenders are a great place to start, they’re not the only option you have. Hard money lenders allow you to borrow the money you need without having to deal with the time-consuming and frustrating process of a traditional loan application.
Here are a few great benefits you can expect to see when you work with this type of lender.
Less Stringent Requirements
When you apply for a conventional loan, whether it’s for a business investment or a property purchase, you’ll have to satisfy certain requirements as part of the application process.
In most cases, lenders look for borrowers with stable finances and high credit scores. If you don’t have either of those things, you may not qualify for the loan in the first place.
When you work with private money lenders, they’ll be more willing to work with you even if you wouldn’t qualify for a conventional loan. This is because they have the ability to set their own qualification requirements and aren’t forced to satisfy overbearing corporate requirements.
Ordinary loan applications take time to review.
Depending on how busy the lender is, you may have to wait for several months just to receive a decision. When you work with California hard money lenders, you’ll receive a decision much more quickly. They have the ability to review applications and render decisions in a matter of weeks, not months.
As long as they believe you’re a worthwhile borrower, they’ll give you the money you need.
More Flexible Repayment Options
Traditional banks and credit unions expect you to make payments on time every month.
If you miss a payment, they won’t be interested in the reason that you missed the payment—they’ll only care about what you’ll do to make up for the late payment. If times are tough and you don’t have the money, they may seize your property to settle your debt with little warning.
Hard money lenders are often more flexible and will be willing to work with you on payments as needed.
Keep in mind that you’ll need to let them know what’s happening if you need a change. As long as you communicate with your lender, you’ll be more likely to receive flexible payment options.
More Personal Experience
When you work with a bank, you’re dealing with employees that may or may not be local to your area.
They don’t have the time to get to know you and understand your needs. When you work with hard money lenders, you’ll get a more personal experience every time.
They understand that you’re looking for money for a reason and will do what they can to help you every step of the way. If you have questions about your application or the loan itself, they’ll take the time to answer them as thoroughly as possible.
Working with a hard money lender is a simple way to get the money you need as quickly as possible. If you’re looking for a loan, apply for a hard money loan and you’ll be able to see these benefits first hand.