Is it important to pre qualify for a Hard money lender? I am asking because I thought the loan was based on the property value, but now Im reconsidering my opinion because interest payments will be due. So How many companies should I apply with? If I apply with too many won’t that hurt my credit score? Just a thought. Any insight would be helpful.
Thanks
Aarron
The reason to pre-qualify with a HML is in the case where you need a pre-qualification to submit an offer (MLS listed properties). Otherwise, as long as you write financing contingency into your offer, you can find one when you have a deal you want to buy.
If you decide to get pre-approved, you definitely need only one pre-approval letter.
The property is the main basis for getting a loan but some HML’s also look at credit score and/or cash reserves.
Also, I’m not sure why you would need more than one HML.
If you find a property and the one HML you are using won’t give you the money because they don’t think it’s a good deal, then it’s probably just better to find another deal.