Hard money loans are typically referred to as private loans. There are many advantages to applying for hard money loans compared to conventional or bank loans. Private lenders of hard loans are generally able to get their applicants the money that they need really quickly. Hard money loans also come with flexible payment structures and no prepayment penalties. Below are the top benefits of applying for a hard money loan.
Fast Loan Process
It can be very difficult these days to secure a loan in a short amount of time. This can even be said for small loans as well. Traditional lenders such as banks and credit unions ask for what seems like never-ending forms, documents and statements in order to be approved. Private lenders are able to offer hard money loans quicker because their decision process is based largely on the amount of collateral that is provided by the applicant.
In general, traditional lending institutions such as credit unions and banks seem to take a one-size-fits-all approach to how they run their lending process. This can leave a lot of borrowers frustrated at the process and ending up not being approved after all is said and done. Private lenders of hard money loans are able to structure repayment plans and collateral release terms which can be mutually beneficial for both the borrower and the lender.
No Prepayment Penalties
Even the best plans can end up changing. Sometimes these changes are for the better. If you do get a chance to pay off a loan earlier than expected, the last thing you will want is to have to pay penalties for being a good borrower. Traditional lending institutions will usually charge hefty fees for borrowers who pay back a loan earlier than contracted to. Private lenders are more invested in your success and as such will structure your loan without any penalties if you happen to be able to pay back your loan earlier than anticipated.
Hard money loans or alternate loans such as bad credit home loans California offered at www.7dayloanservice.net are a great loan choice when you need money fast. Getting your loan money quickly can help you in numerous financial emergencies. It could be just the help you were looking for to get back on your feet.