In Barrie Ontario Canada, as well as many other places, borrowers have found it difficult to secure conventional mortgage loans. This is, more often than not, a result of the stringent requirements imposed by lenders on borrowers. Such lenders, which include banks and large financial institutions, have specific criteria that they use to underwrite mortgages, like thoroughly evaluating a borrower’s credit history, their debt ratios, and their current financial status. It, therefore, does not come as a surprise that many people fail to meet the high standards set by these lenders. As a result of this, private mortgage lenders have met a need in the market for borrowers who do not qualify for conventional mortgages. This has contributed to private mortgages becoming popular solutions for people with bad or damaged credit or who are self-employed.
A Barrie Private Mortgage Loan is recognized as a legal type of mortgage that a borrower can attain. When you apply for a mortgage loan, as a borrower, you will need to make sure that your agreement is written and that it clarifies certain important details – this way there will be less surprises and risks.
The borrower needs to be aware of the following;
Proper documentation for the agreement is very necessary. It protects both the borrower and the lender.
Discussed below are some benefits to acquiring a Barrie private mortgage loan
Unlike obtaining mortgages from banks or other large financial institutions, private mortgage lenders often offer less stringent measures for the borrower. Borrowers unable to get approval for mortgage loans with large financial institutions usually because of the state of their credit, income and or amount of debt. Some people get denied for a mortgage loan because they are self-employed. Large financial institutions will carefully analyse a person’s financial history before they will qualify them for mortgage loans. A private lender, on the other hand, is more focused on the property. This means that a private lender is more likely to advance the mortgage loan if the property being mortgaged is of good quality in a nice neighbourhood. They are more interested in the vakue of the property than they are in your financial history.
Private lenders can take anywhere from 7 to 10 days to fund mortgage loans. Now, this is a much shorter period of time compared to obtaining mortgages from conventional lenders who can take as long as 30 days to underwrite and fund the mortgage. This is to be expected because as discussed earlier, institutional mortgage lenders will want to thoroughly assess and examine your credit history as well as your financial status. For many, applying for a conventional mortgage, not only is the process long, but in many cases turns out to be unsuccessful.
There is, therefore, great benefit in getting started on securing your Barrie private mortgage loan as soon as possible.