Securing Loans with Private Lenders
In Milton, Ontario, Canada as well as many other places, borrowers have found it difficult to secure loans with institutional money lenders such as banks. This is, more often than not, a result of the stringent requirements imposed by the lenders on borrowers. Such lenders often include banks and large financial institutions, and they tend want to thoroughly evaluate a borrower’s credit history, their debt status and their current financial status before approving a loan. It, therefore, does not come as a surprise that a lot of people fail to meet those high standards set by the lenders. As a result, this has given rise to private money lenders who make their own funds available to home owners to meet the needs of borrowers who don’t qualify for conventional loans. This has made private mortgages very popular.
Advantages of Using Private Lender Money in Milton
Applying for and obtaining a mortgage loan from a private money lender has several advantages. They are outlined below
- Debt Consolidation
- First of all, you can consolidate debt with a mortgage from a private money lender. For instance, suppose you have several different loans and bills that you are servicing such as; student loans, mortgage loans and hospital bills, paying all these off one by one can be a very difficult task. With time, you may find that while one or two loan repayments are active or performing, one may be falling behind. Getting one loan to pay off all of these smaller loans can be a great idea.This is because now you – the borrower – will only have to deal with one monthly loan repayment.
- Better Interest Rates
- In some cases, you may find that the interest rates for your other loans or debts such as a credit cards, unsecured loans and lines of credit may be high. To save yourself some money on interest, you could look into getting and negotiating a better interest rate with a private money lender. Once suitable terms have been set, you can pay off your home mortgage loan from a private money lender. All you will have to do is to pay back the new lender at the agreed upon rates .
- Easy Access to Loans
- Unlike the conventional lenders such as banks and large financial institutions, private money lender often tends to focus less on your credit scores, history and ratings. This makes it easier for people with poor credit scores or past bankruptcy issues to access loans easily.
- Faster Process of Closing
Private loans can take anywhere from 7 to 10 days to close depending on the lender. Now, this is a much shorter period compared to obtaining loans from the conventional lenders that would take anywhere from 15 to 90 days. This is to be expected because as discussed earlier, the conventional mortgage lenders will want to thoroughly assess and examine your credit history as well as your financial status. Often the reason why these institutional lenders will not approve you is because of inadequate income or credit.
Call Expert Mortgage today to started on securing a loan with private lender money in Milton as soon as possible.