There are a multitude of reasons why individuals consider the option of finding financing from private lenders; these include, among others:
– an urgent need to find financing: private loans usually take only a few days to be processed and approved
– the borrower has a bad credit and is rejected by the banks
– the borrower is self-employed : he does not meet the requirements or guidelines of the banks
If you find yourself in one of the categories listed above, you should probably opt for a private loan instead of a traditional loan at the bank.
The increase in the number of defaults, foreclosures, tighter mortgage rules and stringent requirements is contributing to the alternative of private lending as a method of financing.
The Benefits of Private Loans
You should consider the option of obtaining a private loan from a private lender if the traditional methods used for this purpose did not work for you. However, there are several reasons he deserves to consider.
If you apply for a private loan, you will benefit from …
– A brief closing schedule
– Get financing quickly
– Get financing even if you do not have a good credit rating
The terms of a private loan are much more flexible than those offered by banks.
Why do private loans exist?
You can use a private lender to obtain loans for your home, vehicle loans or personal loans. Usually, as long as you have collateral, you can get a private loan (guaranteed).
Did you know that you can buy a house using private money? It’s easier to qualify for a private mortgage because private mortgage lenders do not take into account your income or credit rating; instead, it assesses the value of your home while taking into consideration the total value of the loan.
If you want to refinance your home, obtaining a home equity private loan is easily attainable as well. Private lenders specialize in the supply of second mortgages and home equity loans.
In short, private lenders do not function like ordinary banks: they do not have to deal with bureaucracy and strict regulations as banks do, and are thus able to finance individuals very easily and very quickly.