So most people are aware, loans aren’t simple hand-outs, and they shouldn’t be approached as such; a bank’s primary concern is determining whether or not you will be able to pay back your debt based on its time frame and agenda.
How do they do that, you ask? Well, banks judge potential borrowers based on a number of key things. Among them: Who in the heck are you? What do you have to offer the bank? That is, what can they get out of you?
Also, what’s that money gonna be used for? If you were to be smart and get a loan from a hard money lender California, they’d still ask this so be prepared. A bank is a lot more likely to lend money to someone who wants to build something like a home addition (and add equity) than someone who is planning on spending the money on consumption or disposable crap or junk food.
Where you’re trying to get your loan from can be a big factor of whether or not you get it. That’s why some people choose hard money lenders California. Lending criteria can vary between a brick-and-mortar bank and an online financial institution as well as between various geographic regions – some lenders are going to be more prone to give than others. The length and terms of the loan – both the interest rate and the duration of the loan – determine when banks can start recording a profit and also how much profit it will reap. How: Can the bank be sure that you will be able to pay the loan off based on the terms? How can you guarantee payback or at least hedge the bank’s risk in some way?
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027111 Congress Ave |Austin | Texas | 78701
About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.
Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.