Some Facts about Home Loans

However, in my past experience as both a hard money broker and a hard money lender, most private or hard money lenders look at the combination of certain criteria which paint a big picture of how much risk your loan request represents to them.

This includes your ability to repay the loan, the likelihood that you might default, if the property's value will hold up, and in the worst case scenario, a foreclosure.These criteria are combined to determine the risk involved for the hard money lender and if they can recoup their investment plus fees and costs incurred in the event that you default and they have to foreclose.  

There are different standards and strategies that real estate investor's use when evaluating properties. In order for us to get involved with a property, an individual should know that there are some advantages of hard money home loans which are:

– It usually entails in lower monthly loan installments.

– The home owner can pay off the earlier mortgage on his home

– A home Mortgage loan can be taken if the homeowner needs additional money

– It helps the homeowner get a better interest rate as compared to what he was paying on the     existing home mortgage loan

– A Home loan remortgage can also help him consolidate other debts

– He can pay of some large expenses like his children’s education

– He can pay off other higher rate debts like credit card debts, car loans etc.

When making a loan, a bank and hard money lenders both have different options when it comes to determining the value of the property. A hard money lender takes a very conservative approach to property value. For Example, the appraised value means nothing to the hard money lenders. Plenty of hard money mortgage programs allow borrowers to buy houses with little or no money down, but they usually require private mortgage.

If you have any query about Real Estate Hard Money Loans, do contact us at http://www.equitycoalition.com/contact/