Close a Loan When It Doesn’t Fit a Bank
Today’s conventional underwriting standards are more strict than in the past, and loans which had previously closed might be rejected in today’s marketplace. There are many possible reasons for a conventional loan denial including issues found with the property, credit problems, previous bankruptcies or foreclosures, and so forth. Fortunately, you have AHL Hard Money Network available to provide hard money financing for your property.
Hard money financing from AHL Hard Money Network is different from conventional lending; we use private investors who secure their loan with equity in the property, not a review of your credit rating. Our investors can be much more flexible in their approach and which loans they will finance. When you are looking at financing options, here are some tips to consider:
- Understand your real estate transaction — Most borrowers have a basic understanding of the mortgage process, and may not have a clear idea of the problems when a loan is rejected. It is important to fully research all aspects of your transaction, including as much information as possible when a loan cannot be approved. Without that knowledge, you can’t make corrections needed to prevent a reoccurrence.
- Don’t use a broker to get a broker — Many hard money lenders are brokers networking with others. You can get bogged down dealing with a series of brokers, none of whom have responsibility for your loan. AHL Hard Money Network works directly with our investors, keeping you out of an endless broker loop.
- Don’t think the lowest price is your best deal — Obtaining a hard money loan isn’t the same as buying a car, so don’t get caught up in the idea that the lowest price is the best deal. Along with your loan, you are buying the reputation of the company you are dealing with, so do your homework and look for a reputable company like AHL Hard Money Network.
- Commit and follow up — When you receive a loan offer, make the commitment as soon as possible. Offers are not infinite and you need to lock in the loan. You will be asked for different documents needed by the investor to confirm your equity position and so forth, but it never hurts to follow up and ensure your paperwork is acceptable to prevent delays.
Have any questions about hard money loans or are you ready to obtain a loan? Contact AHL Hard Money Network today for a consultation or to start your loan process!