If you get your funding from a non-institutional lender, then you will be said to be having a hard money loan. Regardless of the fact that there are many money lenders, you will find that there is need for you to ensure that you are working with a reliable and reputable one. With a reliable hard money lender, you get to see that the entire process of funding becomes easier and better for you. In this article, you will get to know and understand the indispensable benefits of hard money lending; especially for the borrowers.
One of the benefits that you get with the hard money loans is the speed and immediacy that they offer to you. The fact that the institutions have to follow protocol and other steps when offering you a loan makes them take forever while the non-institutional money lenders are able to process your loan in a day, at most two. In most cases, the hard money lender that you are working with is the one that will determine the charges and the approval. It is critical for you to ask for the requirements before you begin signing the agreement.
The other benefit that you are exposed to with the hard money loans is that they have flexible payments whereby you choose a repayment plan that works for you. It is only for the hard money lenders that you can enjoy the repayment plan that works best for you; nobody needs to push you. With the hard money lenders, you agree with them on the period that you are comfortable with paying the funds; it is fair for both parties. It is important for you to know that as the borrower, you can never be charged or rather penalized for making prepayments; you can clear the loan as early as you get the money or cash.
It is crucial for you to understand that the hard money loan application carried minimal requirements. With minimal requirements, you will find that there is also minimal paperwork which is all to your advantage. The amount that you are eligible for will depend on the asset that you present to the hard money lenders. After the value has been assessed and the application goes through, then you get your money; it is an easy, smooth and fast way to get funding especially in dire times of need.
After you have understood the benefits of the hard money loans and want to take one, you need to know that some of them will need to go through your credit history. However, it is important for you to converse with your lender and know how they operate.