Nowadays, lenders have imposed stringent lending requirements that make it harder for mortgage borrowers to qualify for loans. If you are facing challenges when applying for a mortgage, you may choose to borrow from a private lender. Private investors offer hard money loans or private loans for purchasing real estate to people who want to buy properties. One way of finding Atlanta private lenders for real estate is by asking your family members or friends to give you recommendations of such lenders. You can also join a real estate investment society in Atlanta in order to find such lenders.
Hard money loans can be a great option when you have not been able to qualify for a conventional mortgage due to a poor credit history or if you are a self employed person who cannot provide proof of a steady income. These loans are secured by the property you want to buy. Therefore, you can get a loan if the property shows a likely profit.
Unlike typical mortgage loans, the repayment period for hard money loans is short. The lenders wish is to get a quick return on the money they invest. For this reason, they do not set up these loans to be paid within a number of years like typical mortgages.
Getting a loan that has a repayment period of two years or less can be convenient for several reasons. For instance, you can get such a loan if you are planning to sell the property within a short time frame. This will give you an opportunity to make a profit.
Atlanta residents can also choose to obtain a hard money loan if they expect to qualify for refinancing mortgages loan shortly after buying a property. They can also get such a loan if they want to remodel a property in a manner that will increase its value. They can then refinance or sell the house.
The other time when you can apply for hard money loans is when you want to complete a large scale remodeling project on your property. It can be hard to qualify for a typical mortgage even with a good credit score. Fortunately, a hard money loan will enable you to renovate your house.
The approval process of hard money loans is short. The lender can approve your loan within two or three weeks instead of 30 to 45 days, which often applies when applying for conventional mortgages. It is convenient to have a loan approved quickly, even though you will end up paying higher interest. Private loans have a higher interest rate because people who lack high credit scores can still borrow them.
Hard money loans can be a great option when you have not been able to qualify for a conventional mortgage due to a poor credit history or if you are a self employed person who cannot provide proof of a steady income. These loans are secured by the property you want to buy. Therefore, you can get a loan if the property shows a likely profit.
Unlike typical mortgage loans, the repayment period for hard money loans is short. The lenders wish is to get a quick return on the money they invest. For this reason, they do not set up these loans to be paid within a number of years like typical mortgages.
Getting a loan that has a repayment period of two years or less can be convenient for several reasons. For instance, you can get such a loan if you are planning to sell the property within a short time frame. This will give you an opportunity to make a profit.
Atlanta residents can also choose to obtain a hard money loan if they expect to qualify for refinancing mortgages loan shortly after buying a property. They can also get such a loan if they want to remodel a property in a manner that will increase its value. They can then refinance or sell the house.
The other time when you can apply for hard money loans is when you want to complete a large scale remodeling project on your property. It can be hard to qualify for a typical mortgage even with a good credit score. Fortunately, a hard money loan will enable you to renovate your house.
The approval process of hard money loans is short. The lender can approve your loan within two or three weeks instead of 30 to 45 days, which often applies when applying for conventional mortgages. It is convenient to have a loan approved quickly, even though you will end up paying higher interest. Private loans have a higher interest rate because people who lack high credit scores can still borrow them.
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 Hard Money Lending options in Atlanta he suggests you visit his friend's to learn more.
