Hard money lending can be said to be the kind of financing that comes from non-institutional lenders. Regardless of the fact that there are many money lenders, you will find that there is need for you to ensure that you are working with a reliable and reputable one. If you are looking to acquire the funds without much hassle and complications, be sure to first ascertain the legality of the lender that you are about to get involved with. In this article, you will get to know and understand the indispensable benefits of hard money lending; especially for the borrowers.
With the hard money lenders, you never have to wait forever for your application to be approved; there is the aspect of speed and immediacy. When making the comparison, you notice that the financing institutions could take up to twenty days to approve your loan while the hard money lenders take a day or two. Even when there are the rules and regulations on the interests and charges, you will find that a hard money lender might be one percent higher or lower than the other; talk to them and ascertain their workability. It is critical for you to ask for the requirements before you begin signing the agreement.
As a borrower who has chosen the hard money loans, you will notice that there is the flexibility which essentially means that you can choose your repayment schedule, customized one for you. When looking at the other institutions such as banks, you find that you do not have this freedom; you work with that they have. With the hard money lenders, you agree with them on the period that you are comfortable with paying the funds; it is fair for both parties. It is important for you to know that as the borrower, you can never be charged or rather penalized for making prepayments; you can clear the loan as early as you get the money or cash.
Another benefit that you get with the hard money loans is that there are minimal requirements for your approval. When a trade has minimal terms and requirements, then automatically, there is reduced paperwork. When looking at the eligibility, you will notice that most of the lenders will first look at the asset that you are offering as security before giving you the loan. After the value has been assessed and the application goes through, then you get your money; it is an easy, smooth and fast way to get funding especially in dire times of need.
Finally, it is important for you to know and understand that they might check your credit history; although it is not such a huge factor. Nevertheless, talk to your lender as they differ from one to another.