Check out Source Capital tips for working with hard money lenders in San Diego.
Online PR News – 03-July-2014 – San Diego/California – Source Capital is the residential & commercial hard money lender in the United States. There are new hard money lenders springing up on a regular basis. The process is simple and to make it easier for you to get hard money loans swiftly, here are some useful tips to get you started. Please call us at 888.334.6636 to know more about hard money lenders in San Diego.
Know how it is done?
Before you apply, you need to know how it works so that you can formulate a plan of attack. Hard money loans require the borrowers to leave a valuable real estate as collateral. This is different from traditional loans from financial institutions such as banks in that the value of the collateral determines the feasibility of the loan. The borrower’s credit standing matters only in showing that he is well above board and capable of repaying the loan with interest. Unlike banks, hard money loans are taken directly from the lenders or their partners. Hence, to protect their investment, the collateral must be of viable value. Source capital is one such Hard Money Lender, which helps its clients purchase commercial or residential property. As hard money lenders are not governed by banking laws, they set easier loan terms and are more flexible.
Negotiation of loan terms:
One of the biggest advantages that a hard money lender offers is the absence of red tape and bureaucratic procedures while applying for a loan. Most lenders are small businesses and work out of a specific area, for example, Source Capital lends money to people of California and Arizona. You can easily find the right person to discuss rates and terms. But before approaching any money lender, make sure that you know much about their services and operation. Find those who have already used these money lenders and ask for their opinion. Go online and check for customer reviews.
Hard money rates may vary with each loan scenario depending on the value of the collateral and the loan amount. You will have to be flexible and focus on the big picture. You will have a unique criteria and situation, and as such, the terms you hoped for may not be realistic in the long run, so keep an open mind.
Once your negotiations is underway, you need to provide supporting documents proving that you are indeed, a good candidate for a loan. Even though showing you credit report is not necessary, it may go a long way in swinging the terms in your favor. Emphasize all the positive points of the property that you are pledging as collateral like its potential resale value, location, and others for easy approval of your loan application.
Hard money loans have a higher interest rate than regular bank loans, so try to repay it as soon as possible. Make sure to meet the payment deadlines and report to your money lender regularly to let him know that you are on top of your game. Keep an updated transaction record, which may be useful to negotiate an extension if needed.
Source Capital offers all the benefits you require of your Hard Money Lender and can close your loan in just a week. We are flexible and keep all your preferences in mind while negotiating the terms of the loan. We help buy residential and commercial real estate and help you with the whole process.