It may take a bank several weeks from the time you apply for a loan before it is funded. For real estate enterprises that require a quick turnaround, this can be a concern. The approval and funding of hard money loans, however, can happen in as little as seven or eight days. Here are three reasons why private lenders act more quickly than banks:
Less Timely Applications
Hard money loans are approved by private money lenders who don’t demand as thorough loan applications as banks do. Banks typically do not gather any information about the actual property even if house mortgage loans are backed by the mortgaged property. Instead, they base their risk evaluation on you, the borrower. On the other hand, hard money loans just need the collateralized asset. Usually, this takes the form of the house you’re trying to renovate and sell.
Ratio of Loan to Value
Loans are seen as business opportunities by hard money lenders. Hard money lenders are only interested in the investment and are not concerned with your credit history, assets, income, or employment because they obtain a lien against the property.
Quick and Easy Funding
Because they fund loans more swiftly than banks, hard money lenders are able to act more quickly than banks. This is due to the fact that banks treat depositors’ money as if it were their own rather than as a resource to be lent out for business or community development.
Monroe Funding Corp has a wealth of experience and knowledge to help you reach your investing goals. To learn more about Florida Commercial Real Estate Loans, contact us online or by phone at +1 (954) 419-3539.