Sunday, 17 May 2015

How to Find the Best Hard Money Lender in California

Finding the best lender in California could be a bit difficult job, but if you follow the following tips below this task will be a lot easier. The following tips will help you to find a good and the appropriate lender in your area for business.

Find The Best Hard Money Lender
Finding Hard Money Lender

Locate the best Lender

It is important to that you do not allow your desperation to lead you into bad decision and inappropriate deals with lenders. While you are in desire situation, it is recommended to do online search to find the best lenders that meet your needs. If you are rushed out for time, you will discover that you are paying for a loan that is nowhere near value for money and there are a lot of bad deals in the market. But not to worry; there are still some honest hard money lenders in California offering affordable rates, you still need to search for them.

A non-recourse loan

While you are doing online research, you will discover that there are two types of lenders available: the recourse loan and the non recourse loan. If you opt for the recourse loan you will be putting yourself in danger as the hard money lenders will be able to repossess your house if you are unable to repay them. Furthermore, they will also be able to take legal action against you and surely you will.

However in non-recourse loan does not allow to take legal action if you are not able to pay, but the lender is still able to reprocess your house. Non-recourse loan is favorable and you should check which loan you are opting for the before signing the contract. Do not be conned into losing more money than you owe.

While searching for hard money lenders, you will also come across the term 'points on a loan'. A point is worth 1% of the overall mortgage amount, which means one point on a $ one million is equivalent to $10,000. Usually hard money lenders will offer loans between four and eight points. So it is unlikely you will ever find a loan that is offering one point. You should always search for loans with lower points, the less you will have to pay in the long-term. It is advised to that you stay below five points otherwise you will be swamped with the costly and unforeseen fees!

Know your terms

It is crucial that you know what you are signing up for and be sure that you are aware of all the terms in contract. There will be lenders who create loan structures designed intentionally to fail, particularly those with interest-only or the adjustable rates, you have to know how to identify these. You must also be sure of the exact amount that you will be paying immediately and over the duration of the loan. If a contract is open to change, it is unlikely to be beneficial and should be avoided at all costs. If the amount is constant, there is a possibility that the price may expand quickly and ultimately become huge to repay.

For more information on hard money lenders visit

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