How to Choose the Right Hard Money Lender
hard money loans in as little as a few days. As such, hard money loans are ideal for fix-and-flip real estate investors and others who require a quick turnaround time. While the process of getting a hard money loan may be quick, you should take your time when choosing a lender. Choosing the wrong lender could result in you getting a bad deal, which could put you in a financially strained position. For tips on how to choose the right hard money lender, continue reading.
Choose a specialized hard money lender
One of the most important tips for choosing a quality hard money lender is to pick a lender from a firm that specializes in hard money lending. After all, you wouldn’t go to a general doctor to receive specialized treatment. You shouldn’t trust your finances to a lender who isn’t specifically focused on hard money loans. Choosing a hard money specialist will ensure that the lender has the expertise necessary to properly complete the complex origination, servicing, and compliance requirements of hard money loans. Plus, specialized hard money lenders will know how to best structure your loan to facilitate an advantageous outcome for all parties involved.
Avoid lenders with high default rates
When choosing a hard money lender, pay attention to their default rate. Borrowers should be wary of a hard money lender with a high default rate. Such rates typically warn of poor or predatory underwriting principles. In some cases, lenders will take advantage of uninformed borrowers and the limited regulations required to approve hard money loans. To protect your finances, it is important to avoid lenders who have high default rates.
Go local
Choosing a local hard money lender has several advantages. Local hard money lenders typically offer more flexibility, more attentive customer service, and better quality underwriting principles. Local hard money lenders have more experience providing loans in your specific market. As such, they can more accurately underwrite your asset, which will reduce your risk of defaulting on your loan. In addition, because most hard money lenders will want to personally inspect the property that will mortgage the loan, choosing a local lender will help smooth the process. Plus, choosing a local lender will help you avoid having to reimburse them for visiting expenses. If you’re looking for a quality, reliable hard money lender in Henderson, Las Vegas, or Reno, Nevada, consider choosing the trusted lenders at
Streamline Mortgage. Our specialized hard money lenders work with borrowers on a personal level and provide the opportunity to speak directly with the lender making the funding decision. For a fast, easy, and affordable hard money loan, contact
Streamline Mortgage today.