Before you jump into a hard money loan investment, it’s important to note a few key aspects that will make the process much smoother. We know that credit scores do not play a sole, defining role in this process. However, that doesn’t mean previous transactions, loan history etc. won’t be looked through prior. It will be beneficial to do your research beforehand on what to expect in terms of the hard money process.
It’s important to have a clear understanding of the loan you’re trying to obtain before you make anything official. What exactly are the terms? How can you get pre-approved? Can you commit to the payback period?
More often than not, lenders will have information regarding their loan terms, rates or pre-approval process on their website. It would be extremely useful to check different sites and compare rates; you may have better luck calling the companies directly for a more specific breakdown of their hard money process or to check if they have any current promotions. Another crucial point is to ask what the turnaround time for the loan will be. Can you expect to get approved within the day and receive the loan that week? Will it take a few weeks or up to a month? Do not forget to take this into consideration early on.
Hard money is extremely advantageous for those who want a quick, short-term investment. Since it’s brief, paying the loan back efficiently means doing larger monthly payments to make up for the short period of time. Does this sound doable or will it be too much on your plate? Be sure you know exactly how long your loan term is and ask if your lender provides any extensions (usually for an extra cost).
Do you need a hard money loan or have any questions? We’re always here to help! Give us a call at (281) 377-4708!