Buying a home is a dream come true, but there can be hurdles every now and then. This is where a private mortgage lender comes into the picture. There are various circumstances where a private mortgage lender would be needed.
Here’s a quick post that sheds light on the subject, ‘why use a private mortgage lender?’
Who needs a private mortgage lender?
There are some circumstances where a private mortgage lender comes into the picture. You would need them when:
- You wish to buy an unconventional property that a bank or any other lender isn’t ready to finance.
- You require quick financing and cannot wait for a long approval period or process.
- The bad credit history is causing trouble and you are being turned down by banks and primary lenders.
- You require a short-term loan.
- Your income isn’t as convincing for the banks to offer you a loan.
This is where a private mortgage lender comes and solves your problem. Before you hire a private mortgage lender (not a good idea to get in touch directly), you must understand that there are different types too.
Types of Private Mortgage Lenders
There are different types of private mortgage lenders. You have the following ones:
- Individuals: They lend personal funds and hope to receive a good return.
- Syndicate: They are investors from a particular funded pool.
- Mortgage investment: They are investors who collect or pool funds accessible for several deals.
Are there any specific criteria?
Most of the lenders have to follow specific guidelines before lending.
- The type of property you want to buy and its value – The private lender will check these pointers. The mortgaged property should be ship-shape and a strict appraisal is required. With a poor credit score, the lender is taking a risk and they have to ensure that this investment is absolutely secure just in case you default.
- Your income: Income comes in two categories – there are non-confirmable and confirmable. Confirmable is preferred by most lenders, and non-confirmable is basically self-employed individuals.
There are other things a lender will look at, so please ensure you are transparent about your needs and financial standing.
How do you get in touch with a mortgage lender?
It is not advisable to speak to a mortgage lender directly. You can connect with one through a mortgage broker.
Equity loans with North East should be your #1 option. Your financial needs are urgent, and with a mortgage broker, you will be able to get in touch with the right lender.