There are a lot of reasons to flip houses, but did you know that using a hard money lender can speed up the process and make it easier? A hard money lender will provide easier to manage, more flexible financing, without all the requirements of a traditional mortgage servicer.
Hard Money Lenders Have Less Stringent Requirements
One of the best things about working with a hard money lender is that they have much less stringent requirements than traditional mortgage servicers. This means you can get approved for a loan more easily, and you won't have to jump through as many hoops. Hard money lenders operate solely on their own discretion, so they don't need to meet the criteria of specific credit scores or a certain amount of income.
Hard Money Lenders Offer More Flexible Financing
Another great thing about hard money lenders is that they offer more flexible financing than traditional mortgage servicers. You and the lender agree on the terms of repayment, the interest rates, how fast the repayment has to happen, and any money you need to put down. If you're in default with the lender, you can discuss the situation with them rather than getting sent directly into foreclosure.
Hard Money Lenders Are Faster Than Traditional Mortgage Servicers
One of the best things about working with a hard money lender is that they are much faster than traditional mortgage servicers. This means you won't have to wait as long for approval, and you can get started offers out right away. Once you've established a relationship with a hard money lender and they know you're good for the money, the process will be even smoother. In a fast-paced real estate market, this is important.
Hard Money Lenders Will Usually Loan You More Money
While a conventional mortgage company wants to make sure you can reliably pay back your loan over a long period of time, hard money loans are focused on short-term, high-yield loans. So, you can borrow all the money you need to complete a project at once, rather than having to rely upon smaller loans.
Hard Money Lenders Don't Report to Credit Bureaus
Finally, hard money lenders don't report to credit bureaus. This means your credit score won't take a hit when you take out the loan and it means that your loan won't affect the capacity to get other loans. A hard money loan is more like a contract.
So if you're thinking about flipping houses, you may want to consider working with a hard money lender. They'll make the process easier and faster, so you can get started on your project sooner.
Share20 January 2022
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