Needing a loan and getting turned down by banks and other traditional sources of lending can be very frustrating. People who don't measure up in the employment status, collateral, and credit categories will most likely have to direct their search for financing elsewhere, such as one of the Atlanta private money lenders.
A private loan is made available by private investors who provide financing to borrowers who were turned down by mainstream lenders. Loan officers or lenders act as liasions between these investors and potential borrowers, matching them according to their needs. Terms and rates will vary.
Lenders who officiate loans can be found through personal referrals, in the Yellow Pages, or online. It is important to do some research into the background of this person before deciding to do business with him or her. Requesting and contacting references as well as finding out the lender's foreclosure rate is advisable.
Once a lender has been selected, the prospective borrower will need to apply for financing. A "Statement of Information" form is submitted along with any supporting documents to provide an overall picture of the applicant's financial situation. Any problems the borrower has in terms of credit history, assets etc. Should be brought to the attention of the lender, since he or she may be able to offer a work-around for this issue.
Based on the information presented in the client's application, he or she will be offered a suitable money loan package that matches their needs, assuming they pre-qualify. The rates and amount of the loan are determined by both the ability to pay it back and the nature of its intended use. It's advantageous for the borrower to explain in detail to the lender, how the loan will be used.
In the case of real estate loans, it may also be necessary to have an appraisal done, secure an Automated Valuation Model or Broker Price Opinion, and meet with an escrow company before approval. If there are any outstanding liens against the applicant or the property to be purchased, these must first be resolved, and the necessary documentation provided before a new loan can be granted.
Once the loan has been approved, the lender will prepare the official contractual documents for the borrower to review and sign. It is the borrower's responsibility to ensure that they have a clear understanding of all terms. Next the funds will be released and the proceeds directed to the investor. Loan documents will be filed with the county, and the loan servicing company will "board" the loan, establishing a payment system and schedule.
A private loan is made available by private investors who provide financing to borrowers who were turned down by mainstream lenders. Loan officers or lenders act as liasions between these investors and potential borrowers, matching them according to their needs. Terms and rates will vary.
Lenders who officiate loans can be found through personal referrals, in the Yellow Pages, or online. It is important to do some research into the background of this person before deciding to do business with him or her. Requesting and contacting references as well as finding out the lender's foreclosure rate is advisable.
Once a lender has been selected, the prospective borrower will need to apply for financing. A "Statement of Information" form is submitted along with any supporting documents to provide an overall picture of the applicant's financial situation. Any problems the borrower has in terms of credit history, assets etc. Should be brought to the attention of the lender, since he or she may be able to offer a work-around for this issue.
Based on the information presented in the client's application, he or she will be offered a suitable money loan package that matches their needs, assuming they pre-qualify. The rates and amount of the loan are determined by both the ability to pay it back and the nature of its intended use. It's advantageous for the borrower to explain in detail to the lender, how the loan will be used.
In the case of real estate loans, it may also be necessary to have an appraisal done, secure an Automated Valuation Model or Broker Price Opinion, and meet with an escrow company before approval. If there are any outstanding liens against the applicant or the property to be purchased, these must first be resolved, and the necessary documentation provided before a new loan can be granted.
Once the loan has been approved, the lender will prepare the official contractual documents for the borrower to review and sign. It is the borrower's responsibility to ensure that they have a clear understanding of all terms. Next the funds will be released and the proceeds directed to the investor. Loan documents will be filed with the county, and the loan servicing company will "board" the loan, establishing a payment system and schedule.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Best Atlanta Private Lending he suggests you click here to learn more.
No comments:
Post a Comment