4 Reasons to Choose Hard Money Lenders Over Banks
Looking for hard money lenders that offer personal loans for your next real estate investment? When times are hard and cash flow is a problem, it’s helpful to know what options are available to you. But before you borrow from a hard money lender, you have to know first what you’ll be getting into.
What are Hard Money Lenders? Hard money lenders are usually investors looking to put their money to work. They are non-banking companies or individual investors that provide short-term loans. Borrowers who can’t qualify for bank loans often turn to these hard money lenders to cover their urgent financial needs. Here are four reasons to choose hard money lenders over banks:
1. Faster Approval
Hard money lenders won’t make you wait for weeks and months to approve your loan. Many people can receive the funds from a hard money loan in just a few days, compared to more than a month that a conventional mortgage would require. This would allow a borrower to get a property under contract, then apply for a hard money loan to pay for it. Traditional banks take much longer to approve a loan because they spend time conducting data verifications, credit investigations, and background checks.
2. Fewer Requirements and Restrictions
Compared to traditional banks, hard money lenders require fewer financial documents and are more relaxed in their conditions for loan approval. When you apply for a personal loan with a hard money lending company, you’ll be asked to submit only a valid ID or two and proof of billing.
3. Simpler Process
Traditional banks can be extremely difficult to negotiate with regards to loan approval due to plenty of available bargains and multiple demands. They usually take a stricter approach when evaluating documentation and other requirements. The review and approval procedure for a hard money loan is conclusively simpler and faster.
Hard money lenders typically provide more flexible terms and can offer more creative lending solutions. Because traditional banks do a high volume of loans or target a specific loan structure, they have much less flexibility when it comes to providing lending solutions for exceptional scenarios. For example, hard money loans are generally not available for owner-occupied buildings because those transactions need to comply with federal mortgage regulations. By foregoing the mortgage market, the hard money lender can be more flexible in structuring hard money loans.
About First Funding Loans
First Funding Loans is a hard money lender located in Sarasota, FL that specializes in funding residential and commercial Fix & Flip, Construction, and Bridge Loans. Contact us today at +1 732-991-5216, email us at email@example.com or visit our website https://www.firstfunding.loans/.