subject: Residential Real Estate Loans: The Secret To Loan Approval [print this page] Buying your very first investment property can be a daunting experience. Aside from ensuring that the property has great location, you also have to check if the house you want to buy is capable of producing the amount of profit that you are expecting. And most of all, you have to make sure that you have all the financing needed to secure the investment property that you want.
If you dont have enough investment capital, dont worry. You can use residential real estate loans to buy the house that you want. To get the financing you need, you can approach a private or hard money lender.
Although hard money lenders have less strict lending standards than banks, mortgage companies, and credit unions, it doesnt mean that they will easily approve your loan application in a drop of a hat. Like other investors, they want to make sure that their investments will pay off. They also dont want to be saddled with a useless real estate property in case you default on your loan. Therefore, if youre going to borrow money from these non-traditional lenders, see to it that you will provide them with an offer that they cant resist.
To ensure that youre application for hard money or residential real estate loans will be approved, mention in your loan summary that you will use the funds to purchase or rehab an investment property with a high after repair value (ARV). Hard money loans are asset-based and lenders verify a loans eligibility by assessing the ARV of the house for which the loan is being made. If the lenders feel that the property will bring you a huge amount of money, they will definitely approve your application.
Dont forget to include pictures of, as well as an appraisal on the property you wish to borrow money for in your loan summary. Sending pictures and pertinent documents can earn you positive points from the lenders because these items will support all the information that you have written on your loan summary.
Hard money lenders also love doing business with borrowers who show them proper respect and courtesy. If you want to build good relationships with these non-traditional financiers, ensure that you return their phone calls and answer their inquiries on time.
Want to learn more about residential real estate loans? Go to www.RehabHardMoney.com. The website has all the information you need to find a good source of private money and hard money loans.
