The Pros Of Taking Out A Hard Money Loan When You Are In Debt
A hard money loan is a type of financing offered by non-institutional lenders such as private investors or even companies. There are several lenders offering fast hard money loans at attractive interest rates in Los Angeles. However, before signing those papers, it’s very important to do thorough research on the lender’s reputation. If you choose a reputable hard money lender Los Angeles, you can enjoy several benefits which are listed below.
1. Faster Approvals
Of the main reasons for the increased popularity of hard money loans Los Angeles is the fact that you can get fast pre-approval, usually within 1 or 2 days, provided you have submitted all the documents the lender has requested. Los Angeles hard money lenders mainly focus on whether your asset itself has good value and the equity is at least 20 percent.
Hard money loans can get approved in less than a week and have your money in your account, as compared to regular loans which usually take weeks or months to get approved.
2. Flexible Payments
Private hard money lenders allow their borrowers to create a customized repayment plan that works for them. With big financial institutions like banks, you rarely get such freedom. Instead, you’ll have to abide by the repayment terms and conditions set by the institution. With hard money lenders, you can have a discussion and mutually agree on a repayment plan that suits you.
3. Less Requirements
When seeking a loan from a big financial institution like a bank, you’ll obviously be expected to meet some strict requirements such as stable income, high credit score, etc. It’s without a doubt that bank loan approvals can be quite a hectic process. With a hard money lender in Los Angeles, you will not be burdened with such tough requirements, making it easy to secure the loan. As long as your property has a high market value, you will stand a good chance of qualifying for the loan.
4. Credit History or Score not a Big Issue
In big lending institutions like banks, your credit history and score can have a big impact on getting your loan approved. If you have a poor credit score or bad credit history due to many debts or late payments of your debts and bills, chances are your loan application papers will just be put in the dustbin. Private lenders, however, put less emphasis on your credit history or score. This is because these lenders approve loans based on your property value and equity, etc. So if you meet these requirements, you have a good chance of securing the financing.
Visit californiahardmoneydirect.com for fast hard money loans in Los Angeles.