subject: Hard Money Mortgage: Secrets To Loan Approval [print this page] Investing in real estate is a great way to make money amid the financial downturn. You can take advantage of the abundance of undervalued properties in the market and benefit from low home prices. However, to invest in properties, you will need a considerable amount of cash. As the saying goes, you need money to make money. You also have to find a good source of funds for you to be able to grab great money-making opportunities that knock on your door.
Fortunately, you can rely on hard money mortgage lenders in this regard. These non-traditional financiers can provide you with the funds that you can use to invest in a property. In addition, they can act fast and process a loan application in a flash, allowing you to close a transaction immediately.
Due to the recent mortgage crisis, the services of hard money lenders are in demand more than ever. Because most banks and traditional lenders are stepping up their lending criteria, many borrowers are turning their attention to lenders of hard money in hopes of securing quick financing for their real estate investments.
Because of the stiff competition for hard money mortgage loans, obtaining the services of hard money lenders has become more complicated. But to help you secure the funding that you need, here are some tips on how to easily get the approval of these non-traditional financiers:
Submit an enticing loan summary. Lenders find it hard to turn down applications with tempting loan summaries, which is why you need to make yours as attractive and interesting as possible. However, you shouldnt put too much information on your loan summary because you may put the lender off if you do so. Always keep in mind that the purpose of submitting a loan summary is to make the lender call you and ask for more details.
Never borrow hard money for unprofitable real estate investments. As we all know, hard money lenders base their decision to approve or reject a loan application on the value of the property for which the loan is being made. So if youre going to make a hard money loan for a house that wont yield high investment returns, your loan application is likely to go straight to the trashcan.
Earn the respect of hard money mortgage lenders by promptly returning calls and answering questions with honesty. These non-traditional financiers like to work with people that they can trust.
