Most people looking for a mortgage go to large lenders or financial institutions such as banks to apply for a loan. A bank will analyze a borrower’s credit history, their current financial standing, and their debt status. When someone is unable to qualify for a traditional institutional mortgage, then they may need to apply for a mortgage loan through a private lender. These are available in Oshawa, Ontario or anywhere in Canada.
Unlike a conventional mortgage loan, a private mortgage loan is the easiest option for borrowers. Oshawa private mortgage loans are loans provided by a private mortgage lender who often use their own money to fund the mortgages. The lender could be an individual or group of individual investors who pool their own money to lend to people needing a loan. The process of applying for and getting private mortgage loans is a lot easier than with the banks.
A private mortgage loan is binding legal agreement. When you apply for a private mortgage loan in Oshawa, make sure you have all of the required documents. You will receive a Commitment in writing which contains all of the basic terms of the Agreement. This is important so that you understand the terms of the mortgage. After the commitment is signed and the accompanying documents required by your broker, the lawyers will prepare the mortgage documents that will be binding upon both parties. Once signed the mortgage will be registered on the title of your house.
• When is payment due?
• What if I can’t make a payment?
• What method of payment can be made and where can it be made?
• What does the private lender require and need as collateral for security?
• A private mortgage loan could be the best choice for people who want to buy a home, because not everyone is qualified to meet all of the needed requirements, i.e. perfect credit history, debt status. Many people who are self-employed may not qualified for a mortgage with large financial institutions such as banks or credit unions. These institutions inspect borrowers’ whole financial history before they approve their applications. Unlike traditional mortgage lenders, private mortgage lenders don’t necessarily look as closely at financial status or credit history. Private mortgage lenders lend money based on the value of the home, or project in question, and the borrower’s ability to repay the money. If the request meets these requirements, the lender will extend the mortgage.
• Conventional lenders and large financial institutions can take 15-90 day for loan approval. Many times the result is that the application is unsuccessful. Private mortgage lenders, on the other hand, will can take as little as 24 hours to approve a loan! A typical closing can be 7-10 days. Arranging a private mortgage is often far easier and quicker.
• Borrowers of with private mortgage loans can opt to only pay interest on the amount borrowed. At the end of the term the borrower will either need to renew the mortgage or pay back the amount of the loan.