If you are on the path to buying a house and are looking for a mortgage, it is likely you will face the big question of which lender to take the loan from? You have big banks or private lenders to choose from, but which one of these suits your interests best? When compared to conventional lenders, private lenders have advantages that are hard to beat. Here are five benefits you will get by opting for a private lender.
Lesser qualification hassles
It is easier to qualify for the lending criteria set by a private lender as not all of us have a favorable credit score. Good credit scores can't be made overnight and bad credit scores are etched in your reports for many years, which may lead to your disqualification for a mortgage. Private lenders, on the other hand, look at other collaterals and are flexible enough as they take risks by giving you a chance and extending you a loan even with a not-so-good credit score.
First-time borrower advantage
If you are taking a loan for the first time, private lenders are your best bet. As private lenders have 'calculated risks' in their books they extend you the loan for the house of your dreams even if you are someone young, or are someone who has never taken a loan before. But once you take this loan from the private lender you can graduate to other investments too.
Simplified Application
Private lenders bring along the massive advantage of an extremely simple application process as compared to traditional lenders such as banks. They won't ask you for paperwork and neither will they sit and go through each document to validate it. Risk-taking is a part of the daily work of private lenders and they won't even hold themselves from giving you a loan because of a gap in your employment chart. Your chances of getting a loan from them are pretty fair.
Lightning speed
As we mentioned above about the paperwork, banks will go through all your documents and validate them. This consumes a lot of time, sometimes months. In short, going with private lenders cuts the long and agonizing wait between you and your mortgage loan and also your dream house. Moreover, private lenders are not bound by any rules which makes processing the loan even faster. Time is of the essence for those in the need of a loan. You may be waiting for the loan to come through to unlock the next chapter of your life and private lenders understand this. The downside could be a higher interest rate, but you do gain by saving a lot of time.
Moreover, private lenders are also very flexible in providing a loan package that best suits their needs. Personalized loans are what you get when you approach a private lender for the mortgage.
If you too are looking to find the best private lender to suit your loan needs and need help do not hesitate to reach out to LendX.