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. It is only when you have the reliable hard money lenders that the process of acquiring the funding gets easier and stress free. In this article, you will get to know and understand the indispensable benefits of hard money lending; especially for the borrowers.
One of the benefits that you get with the hard money loans is the speed and immediacy that they offer to you. The fact that the institutions have to follow protocol and other steps when offering you a loan makes them take forever while the non-institutional money lenders are able to process your loan in a day, at most two. When it comes to the interest rates and the time for approval, you will find that it varies from one hard money lender to another. In efforts to avoid unnecessary charges, it is critical for you to ensure that you check the agreement clauses, read them and understand before making any commitments.
Since you are borrower in this question, you are ultimately able to negotiate on the terms of payment; the schedule works for you; you choose the repayment plan that is most workable 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. Additionally, you will notice that there are no prepayment penalties for you; you can pay even before the maturation date.
It is crucial for you to understand that the hard money loan application carried minimal requirements. With minimal requirements, you will find that there is also minimal paperwork which is all to your advantage. 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. However, it is important for you to converse with your lender and know how they operate.