We all are aware that getting a mortgage is an uphill task, especially if the borrower is approaching traditional lender for the same. If you are looking to get a private mortgage in the Brampton area, look no further as we can handhold your through the entire process. If you have a stead and comfortable income, all you need to do is to find yourself a lender who will accept your collateral. To get a private mortgage in Brampton you first need to have a clear understanding of how private mortgages work. They are, in fact, pretty simple. What you do need to know, however, is that mortgage rates are usually higher for private mortgages as compared to conventional mortgages. Private mortgages come into play when traditional lenders won't agree to give you a loan and hence are a good alternative choice for borrowers in Brampton.
The need for a private lender | Why should you approach a private lender?
If you don't qualify for a loan from the bank or a lending institution for reasons such as being self-employed, need a speedy or short-term loan, or not fulfilling the bank's criteria for being able to offer you a loan, private lenders are mostly ready to give you that chance. They account for the total value of the home and its marketability instead of just denying a loan based solely on your credit history.
Know your lenders
Those who haven't dealt with private lenders in the past may wonder who they are? The private lenders can be individual lenders or a group of investors who lend jointly.
Know the interest rates you will have to pay
The interest rates of private mortgages are based on criteria such as the area, type of property, degree of risk involved i.e. the probability of you making monthly payments on time or defaulting, administration costs, etc. They quote their mortgage interest rates on a case-to-case basis, and these rates are usually higher than the ones you would have to pay a traditional lender.
Time for approval of a private mortgage | Processing time for a private mortgage
Private mortgages put you at an advantage as these loans are processed way quicker than traditional mortgages. Approval can come within a week of applications, and if you are lucky, even faster. That said, the release of funds can take up to 3 weeks due to the loan processing procedure involved.
Loan criteria by private lenders | What do private lenders need from you?
Private lenders are not as strict as traditional lenders. But they do need some basic things from you to be able to provide you with a loan. They would typically look at your income, the property type, and its value, a down payment amount, and if you are refinancing they will look at the equity.
If you too, are looking for a private mortgage in Brampton, and are trying to find a lender, do write into LendX. We would be happy to help.