When defining a hard money loan, you will find that it is financing that is given to you by non-institutional lenders. Regardless of the fact that there are many money lenders, you will find that there is need for you to ensure that you are working with a reliable and reputable one. With a reliable hard money lender, you get to see that the entire process of funding becomes easier and better for you. Here are some of the unparalleled effects of getting your money from a hard money lender.
With the hard money lenders, you never have to wait forever for your application to be approved; there is the aspect of speed and immediacy. The fact that the institutions have to follow protocol and other steps when offering you a loan makes them take forever while the non-institutional money lenders are able to process your loan in a day, at most two. Even when there are the rules and regulations on the interests and charges, you will find that a hard money lender might be one percent higher or lower than the other; talk to them and ascertain their workability. It is critical for you to ask for the requirements before you begin signing the agreement.
Since you are borrower in this question, you are ultimately able to negotiate on the terms of payment; the schedule works for you; you choose the repayment plan that is most workable for you. When looking at the other institutions such as banks, you find that you do not have this freedom; you work with that they have. With the agreement being discussed between the lender and the borrower, you find that it is fair. In addition to this, you will find that you are not liable for any prepayment penalties(penalties for paying earlier than the agreed date)if you get the money before the time, you can pay.
Another benefit that you get with the hard money loans is that there are minimal requirements for your approval. The fact that the application has minimal requirements means that they will also need minimal paperwork which is all to your favor. The amount that you are eligible for will depend on the asset that you present to the hard money lenders. When you check all this, you get to see that it is convenient and very workable for you; there is no hassle.
Finally, it is important for you to know and understand that they might check your credit history; although it is not such a huge factor. However, it is important for you to converse with your lender and know how they operate.