When applying for private or hard money loan what are the best terms to ask your lender for that won’t kill your chances at getting the loan?
You should consider your available cash and purchase power whenever you are discussing loan terms with a company. Always settle with a win-win situation.
I’m pretty sure they’ll tell you what the terms are gonna be. Just saying. It’s up to you to determine if the lender’s terms, etc. will work for you in each case.
This is 100% correct!
Thanks for your input! Question : when the lender gets back to you with their terms of the loan and I except ,what information is reasonable to send them? I’ve had a few request that I fill out an application, Im fine with that. I’ve had two tell me to send them my banking acct info so they can verify an open account and I would have to send them a separate fee to their account before the loan can be sent to me…Im no fool ! What is the proper way you receive funds and how can you tell the real from the fakes?? :banghead
Typically you fill out a loan app. Provide last two mo. bank statements and paystubs. If trying for a “low-doc” or credit based loan you may also be required to provide 2 tears tax returns. The only “out of pocket” funds that you should pay to a HML is the price of the inspection and appraisal. This should in most cases be $500 - $750. I would be very concerned if the HML wants more than $750 in up-front fees for a SF purchase. if they are asking for more move on a find a DIRECT HML. Once you have a Loan Term Sheet most HML’s will charge a Doc Prep Fee to cover the legal fees for drawing the loan docs. This should be less than $500.00 as well. That’s it. All the rest of the funds required for the transaction should be paid at closing.
Yes :rolleyes
The most important it to check the terms and policy of the financial lender and at what price it will charge rate of interest?
So, who are these illiterates?
When your home loan application or refinance has been turned down by the 30 year fixed rate lenders, the credit union, the bank you’ve been at for umpteen years and your family can’t or won’t loan you money, the truth is the only program left is hard money. And that requires you have at least 25% equity and an ability to repay the loan or a decent down payment if the loan is for a purchase. The most you will get is 75% of the value of the property: If it’s worth $300,000 the most you will be able to get is $225,000.