Fraud is common in the financial industry, and hard money loans are not immune to fraudulent practices either. If you’re thinking of choosing a hard money lender for your next investment to purchase, there are a few things to watch out for.
Extra fees. Yes, a hard money loan will have fees attached to them, but they should not be excessive. Shop around if you need to and see what’s being charged and why so you have a better understanding of hat existing rates are for the fees being charged.
Points on the loan. Hard money lending works substantially different than a traditional lender. In some rare cases, however, a hard money lender may charge loan points. Keep in mind that a major perk or selling point of going with a hard money loan is being able to get the money you need without all of the hurdles even if your credit score is not up to par. Hence, if a lender is adding points to the loan, strongly evaluate whether it’s the right decision…or the right lender.
This update is by Miami hard money lending company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on Florida hard money lending or hard money loans Miami, please call 954-816-0388 or fill out our application.