If you get your funding from a non-institutional lender, then you will be said to be having a hard money loan. 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. 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. 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.
The other benefit that you are exposed to with the hard money loans is that they have flexible payments whereby you choose a repayment plan that works for you. It is only for the hard money lenders that you can enjoy the repayment plan that works best for you; nobody needs to push you. There is fairness that comes in with being able to decide and customize your repayment plan. Additionally, you will notice that there are no prepayment penalties for you; you can pay even before the maturation date.
The other advantage that you have with hard money loans is that they do not have all those 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. It is only when you talk to the lender that you will gain insight on how they operate.