If you get your funding from a non-institutional lender, then you will be said to be having a hard money loan. It is your responsibility to make sure that you are working with a reputable and reliable hard money lender. It is only when you have the reliable hard money lenders that the process of acquiring the funding gets easier and stress free. Here are some of the unparalleled effects of getting your money from a hard money lender.
With the hard money lenders, you never have to wait forever for your application to be approved; there is the aspect of speed and immediacy. When making the comparison, you notice that the financing institutions could take up to twenty days to approve your loan while the hard money lenders take a day or two. Even when there are the rules and regulations on the interests and charges, you will find that a hard money lender might be one percent higher or lower than the other; talk to them and ascertain their workability. There is the need for you to ensure that you countercheck the agreement before signing.
As a borrower who has chosen the hard money loans, you will notice that there is the flexibility which essentially means that you can choose your repayment schedule, customized one for you. When looking at the other institutions such as banks, you find that you do not have this freedom; you work with that they have. With the hard money lenders, you agree with them on the period that you are comfortable with paying the funds; it is fair for both parties. Additionally, you will notice that there are no prepayment penalties for you; you can pay even before the maturation date.
Another benefit that you get with the hard money loans is that there are minimal requirements for your approval. When a trade has minimal terms and requirements, then automatically, there is reduced paperwork. It is critical for you to know and understand that the money lenders first assess the value of the asset presented before giving you the loan. After the value has been assessed and the application goes through, then you get your money; it is an easy, smooth and fast way to get funding especially in dire times of need.
Finally, it is important for you to know and understand that they might check your credit history; although it is not such a huge factor. However, it is important for you to converse with your lender and know how they operate.