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.
Opting for hard money loans, especially if you cannot qualify for a typical mortgage due to a poor credit history is wise. These loans can also be ideal if you are self employed and you cannot show that you have a stable source of income. The property you wish to purchase will act as the collateral. You can therefore qualify for credit if the property is likely to gain profit.
Hard money loans have a shorter repayment period than traditional mortgage loans. The lenders look forward to getting a quick return on their investment. Therefore, these loans are no set up to be paid within several years.
It can be convenient to get a loan with a repayment period of 2 years or less. For example, investors can apply for it if they plan to sell the house within a short period. With such a loan, investors can buy a property and sell it for 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.
You may also apply for a hard money loan if you are planning to carry out an extensive renovation project on your house. In such a case, you may not qualify for a conventional mortgage even though your credit score is good. A hard money lender can provide the financing you need to get the house in good condition.
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.
Opting for hard money loans, especially if you cannot qualify for a typical mortgage due to a poor credit history is wise. These loans can also be ideal if you are self employed and you cannot show that you have a stable source of income. The property you wish to purchase will act as the collateral. You can therefore qualify for credit if the property is likely to gain profit.
Hard money loans have a shorter repayment period than traditional mortgage loans. The lenders look forward to getting a quick return on their investment. Therefore, these loans are no set up to be paid within several years.
It can be convenient to get a loan with a repayment period of 2 years or less. For example, investors can apply for it if they plan to sell the house within a short period. With such a loan, investors can buy a property and sell it for 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.
You may also apply for a hard money loan if you are planning to carry out an extensive renovation project on your house. In such a case, you may not qualify for a conventional mortgage even though your credit score is good. A hard money lender can provide the financing you need to get the house in good condition.
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 Atlanta he suggests you visit his friend's for more information.
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