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. This article is dedicated to ensuring that you understand the advantages that you are exposed to when you choose to acquire money from the hard money lenders.
One of the benefits that you get with the hard money loans is the speed and immediacy that they offer to you. If you were to compare two cases, one that took a loan from the bank and one that went to the hard money lender, you will find that the latter gets their money within two days while the former cold even take forty five days. 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. There is the need for you to ensure that you countercheck the agreement before signing.
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. With the large institutions, you find that you do have that freedom and that could be a barrier to you. 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. In addition to this, you will find that you are not liable for any prepayment penalties(penalties for paying earlier than the agreed date)if you get the money before the time, you can pay.
Another benefit that you get with the hard money loans is that there are minimal requirements for your approval. The fact that the application has minimal requirements means that they will also need minimal paperwork which is all to your favor. The amount that you are eligible for will depend on the asset that you present to the hard money lenders. When you check all this, you get to see that it is convenient and very workable for you; there is no hassle.
Even when it is not a critical factor, you will notice that some of the money lenders will want to go through your credit history. It is only when you talk to the lender that you will gain insight on how they operate.