According to the Washington Post, roughly 36% of homebuyers in 2021 paid for it entirely with cash. While it’s true that cash is king, sometimes the next best option is to obtain financing to purchase your home. If traditional financing isn’t working out for you, consider taking out a loan with a private money lender. Here are the top three reasons why you should submit a private loan application.
Easier Application Process
One of the things that makes a private loan application easy is that the requirements are not as strict compared to the requirements of banks. If you have poor credit, the chances of approval at the bank are quite slim. Yet, a private money lender is often willing to consider your application. The other thing is that there’s less red tape, and this enables you to get the money you need with minimal hassle. Banks usually require you to submit a lot of paperwork when applying for a loan, but you can easily qualify with a private lender because they have slightly different eligibility criteria.
Are you looking to take out a private money loan so you can invest in real estate? Then you know too well the value of moving quickly. Fortunately, private money lenders offer loans that have a short turnaround time. This results in a speedier process that’s less stressful overall. If you have already established a relationship with the lender, it’s likely that you can get your money in an even shorter timeframe. This is crucial because if you spot a great real estate deal, you’ll be able to make an offer quickly and secure a great investment.
When you apply with a private money lender, you can enjoy more flexible terms. For instance, it’s easier to negotiate the down payment you need to make. Banks can be quite inflexible, requiring you to put in a minimum down payment. Private lenders have more flexibility to consider applications on a case-by-case basis, and this increases your chances of getting approved. Seeking out a private money lender is a great starting point because they allow for risks, which gives you the chance to make important investments and purchases. Over time, you can get better deals once you have built a relationship with your private money lender.
These are the top reasons why a private money loan might work for you. If you agree, contact us today so we can start processing your private loan application.