Needing a loan and getting turned down by banks and other traditional sources of lending can be very frustrating. People who don't measure up in the employment status, collateral, and credit categories will most likely have to direct their search for financing elsewhere, such as one of the Atlanta private money lenders.
A private loan is made available by private investors who provide financing to borrowers who were turned down by mainstream lenders. Loan officers or lenders act as liasions between these investors and potential borrowers, matching them according to their needs. Terms and rates will vary.
Lenders who officiate loans can be found through personal referrals, in the Yellow Pages, or online. It is important to do some research into the background of this person before deciding to do business with him or her. Requesting and contacting references as well as finding out the lender's foreclosure rate is advisable.
After choosing a lender they are confident in and comfortable with, the borrower will begin the loan application process. This begins with completing a "Statement of Information" form and submitting it as well as all supporting documents which are required, doing so gives the investor an overview of the applicant's financial situation. Clients should be sure to disclose any credit issues etc., with the lender, as they are in the business of finding solutions for such problems.
The money loan package best suited to the client depends on his or her financial state as well as the intended purpose of the funding. Similarly, the maximum loan amount and interest rates will also be based on these factors. The more details pertaining to the use of the money, the better: lenders prefer to have a clear idea of how the funds will be spent.
If the loan is to purchase a property, appraisal, obtaining a Broker Price Opinion or Automated Valuation Model, and dealing with an escrow company may also be involved. What's more, any outstanding liens against the property or applicant must be resolved and confirmed with the appropriate documentation before any new loan can be approved.
Once the loan has been approved, the lender will prepare the official contractual documents for the borrower to review and sign. It is the borrower's responsibility to ensure that they have a clear understanding of all terms. Next the funds will be released and the proceeds directed to the investor. Loan documents will be filed with the county, and the loan servicing company will "board" the loan, establishing a payment system and schedule.
A private loan is made available by private investors who provide financing to borrowers who were turned down by mainstream lenders. Loan officers or lenders act as liasions between these investors and potential borrowers, matching them according to their needs. Terms and rates will vary.
Lenders who officiate loans can be found through personal referrals, in the Yellow Pages, or online. It is important to do some research into the background of this person before deciding to do business with him or her. Requesting and contacting references as well as finding out the lender's foreclosure rate is advisable.
After choosing a lender they are confident in and comfortable with, the borrower will begin the loan application process. This begins with completing a "Statement of Information" form and submitting it as well as all supporting documents which are required, doing so gives the investor an overview of the applicant's financial situation. Clients should be sure to disclose any credit issues etc., with the lender, as they are in the business of finding solutions for such problems.
The money loan package best suited to the client depends on his or her financial state as well as the intended purpose of the funding. Similarly, the maximum loan amount and interest rates will also be based on these factors. The more details pertaining to the use of the money, the better: lenders prefer to have a clear idea of how the funds will be spent.
If the loan is to purchase a property, appraisal, obtaining a Broker Price Opinion or Automated Valuation Model, and dealing with an escrow company may also be involved. What's more, any outstanding liens against the property or applicant must be resolved and confirmed with the appropriate documentation before any new loan can be approved.
Once the loan has been approved, the lender will prepare the official contractual documents for the borrower to review and sign. It is the borrower's responsibility to ensure that they have a clear understanding of all terms. Next the funds will be released and the proceeds directed to the investor. Loan documents will be filed with the county, and the loan servicing company will "board" the loan, establishing a payment system and schedule.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Atlanta Commercial Private Lending he suggests you click here to learn more.
