Hard money lending can be said to be the kind of financing that comes from non-institutional lenders. It is your responsibility to make sure that you are working with a reputable and reliable hard money lender. With a reliable hard money lender, you get to see that the entire process of funding becomes easier and better for you. Here are some of the unparalleled effects of getting your money from a hard money lender.
One of the benefits that you get with the hard money loans is the speed and immediacy that they offer to you. The fact that the institutions have to follow protocol and other steps when offering you a loan makes them take forever while the non-institutional money lenders are able to process your loan in a day, at most two. When it comes to the interest rates and the time for approval, you will find that it varies from one hard money lender to another. There is the need for you to ensure that you countercheck the agreement before signing.
The other benefit that you are exposed to with the hard money loans is that they have flexible payments whereby you choose a repayment plan that works for you. When looking at the other institutions such as banks, you find that you do not have this freedom; you work with that they have. With the hard money lenders, you agree with them on the period that you are comfortable with paying the funds; it is fair for both parties. Additionally, you will notice that there are no prepayment penalties for you; you can pay even before the maturation date.
The other advantage that you have with hard money loans is that they do not have all those requirements for your approval. With minimal requirements, you will find that there is also minimal paperwork which is all to your advantage. When looking at the eligibility, you will notice that most of the lenders will first look at the asset that you are offering as security before giving you the loan. When you check all this, you get to see that it is convenient and very workable for you; there is no hassle.
Finally, it is important for you to know and understand that they might check your credit history; although it is not such a huge factor. It is only when you talk to the lender that you will gain insight on how they operate.