Sometimes, the process for obtaining hard money loans can be a little… confusing. But no worries, we here at Priority Investor Loans have your back! Here are some crucial tips and tricks to guarantee an easy acquisition of these short-term loans for every party involved.
- Understanding the Loan: Be sure to know exactly what you are asking for. What does that mean? It’s crucial you do your own research or ask questions about the loan you are seeking; this includes making sure you qualify, knowing the loan terms and interest rates, and when it has to be paid back.
- Collateral Analysis: Hard money loans must be backed by tangible assets; this means it is absolutely crucial to define the value of these real assets and what this value is based on. This is important to do at the beginning, so that your lender has all the facts up front. As part of defining the collateral, location of the property is key. Be sure to tell your lending specialist about the area surrounding the property or any alarming indicators they should know about. Know the exact location, bring photos of the estate and if you can, the areas surrounding it is as well. The more information you have about it, the better the lender will know if it’s a safe investment.
- Documentation: It’s true, hard money loans are based on the value of collateral, not credit scores. However, the lender will need to see a few documents to ensure that you are ready and able to pay back this loan. This may include documentation of your income per month, that way the specialist can understand your financial situation and feel secure. Other documents could include: proof of credit, tax information, other assets you own or previous repayment plans.
- Plan for Repayment: While it’s important to have a plan throughout this process, you should already be preparing for what happens after you receive the loan. Your plan or method of repayment is a big question your lender will have for you. Having a clear idea of this and knowing the details will only help with a smooth loan transaction.
We want to help you have zero issues when applying for a hard money loan. Have any questions? For more information, be sure to call (281) 377-4708 or apply now. We look forward to working with you!