Purchase of residential or commercial properties may require borrowing loans to cover the costs associated with the acquisition. Typically, soon-to-be property owners would approach traditional banking institutions to obtain loans. But this is rapidly changing with many of them preferring the services of a Houston hard money lender instead. Making the decision between the two sources of funding is sometimes a bit tricky, which makes it important to have all the information you need to make an informed decision.
Benefits of Borrowing from Private Money Lenders
Private money lenders that offer hard loans to individuals are high in the market, making it important that you choose a reliable company that will offer funding that is mutually beneficial. If you are still unable to decide whether a Houston hard money lender is the best funding option for your project, here are some advantages they have over other types of lending institutions.
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Disregard Credit Score
Among the many challenges that property owners face when looking for loans from traditional lending institutions is the need to have a perfect score on their credit. However, for residential hard money lenders, the main focus is on the value of the collateral provided by the borrower. This essentially means that property of good vale can get a borrowing loan from individual money lenders within the shortest time possible.
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Offer Loans Quickly
In most cases, loans given by private individuals have a time limit of six months to two years, which makes them ideal for borrowers that need loans for a short time. In addition, the loans from these lenders are approved much faster, making it possible to invest in property that needs payment quickly.
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Governed by Local Laws
Although borrowing from individual lenders does not involve a lot of protocol similar to institutional lenders, they are still governed by local laws. They are usually required to assess the ability of borrowers to pay back the loan by asking for documents such as bank statements or even tax returns. However, these documents do not play a huge role in determining whether a loan will be approved or not.
Get the Best Hard Money Lender Rates in Houston
Obtaining loans from hard money lenders can be a smooth process for you when working with a reliable company. Noble Mortgage & Investments is a firm that is committed to making the borrowing process of commercial and residential property easier and much faster. Contact Noble Mortgage & Investments today to begin your journey towards getting funding for purchase of property!
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