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They will consider your assets above the amount of the credit and that is the reason why borrowing money from individual investors is an efficient deal. Here are some of the huge benefits of hard money financing.
Quick process:
If banks usually take almost sixty long days to approve your loan application, hard money lenders will offer you the loan within 1 to 2 days and you may be happier if the local investor knows you personally as you could be given. . money instantly. This loan can be the perfect destination for you in emergency situations, for example, when you need to accompany the construction in order to put your property up for sale or if you are going to make a quick acquisition. You can even impress buyers with a sudden arrival on an offer and make a deal.
Less paperwork:
Paperwork is something that has been holding users back for a long time. More often than not, people get stuck in the middle of paperwork and that’s why they want to skip all of those. Generally, banks and traditional lenders tend to drag you through a long and grueling process of countless signatures on complicated forms and then you have to wait at least a month for approval. On the other hand, hard money lenders avoid doing the same. They will ask you to sign 3-5 simple documents and ask you a few questions and examine your credit history to make sure you can afford the loan payments. More precisely, each individual deals with only one customer and evaluates individual applications differently and makes the decision based on their property so that you can get the best service. As a result, if you also have bad credit, you can easily get the loan.
Flexibility:
Banks can demand payment each month. These regular payments can be the burden of your way and hard money loans come with flexibility for payment terms. So if you are having a difficult time, you can skip a month or more than just giving the interest, but that obviously depends on individual investors. You must pay a balloon payment at the end of the year.
The above points are good enough to help you understand the benefits of hard money financing.
