Understanding the benefits of Arizona Hard Money Loan will help borrowers justify the cost of using hard money. There is a price to be paid for everything that offers this many benefits.
Arizona Hard Money Loan are certainly more expensive than traditional loans. And because they are more expensive, many borrowers question what could be a good reason to use hard money. And the simple answer is that there are several reasons that hard money is a great option for many borrowers. Arizona Hard Money Loans can eliminate many of the issues that borrowers face when working with a traditional lender.
Anyone who has worked with a bank or mortgage company to secure a loan will tell you that there is nothing fast or simple about the process. You are required to complete long forms and submit a huge pile of documents before the lending institution will even consider loaning you any money. But because the focus of a hard money loan is on the collateral and not the borrower’s credit rating, there is far less information and documentation required to apply for the loan. In addition, the application evaluation process is much faster. Lenders are not required to evaluate as much information and can decide on the approval much more quickly. And with the request approved, funding is normally completed in just a few days. All of this speed is definitely worth the higher cost of hard money loans.
Another complaint from many borrowers is that traditional lenders are not at all flexible. They follow a specific process and will write loans on their terms only. If you do not meet their criteria, or if you are looking for a slightly different set of terms, then they are not interested in working with you. But being private allows hard money lenders more freedom in their processes as well as the terms for the loans that they fund. This less than standardized underwriting process allows borrowers to negotiate terms with the lender and actually end up with a semi-custom loan. And as we all know, anything that is customized is worth paying more for.
Approval is Key
If you are unable to qualify for a traditional loan, then it is a simple decision to pay a little bit higher interest rate to secure hard money. Hard money lenders are even willing to work with borrowers who have a foreclosure on their credit history. So this is a great opportunity for borrowers to begin to rebuild their credit while also enjoying all of the other benefits of owning a property. The easier approval process and requirements are two of the benefits that most borrowers are happy to pay a little more for.
When you have no other loan options, paying a higher interest rate and higher fees is a small price to pay to secure a loan. Borrowers who are in need of a fast loan process are also often willing to pay the higher rates associated with hard money to secure a great property. And borrowers who are seeking unique loan terms or who need to negotiate the loan terms are happy to pay a private lender for the ability to tailor a loan to fit their needs.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.