Why Borrowers May Choose a Private Mortgage

When one decides to make an important financial decision in their lives such as buying a house, they do their due diligence by identifying a list of lenders and companies and comparing the available financing options to make a well-informed decision. However, not everyone can get their mortgage application approved by a traditional lender like a bank. However, there are private mortgage lenders out there to help people who get their mortgage applications rejected by the bank. A private mortgage is a type of mortgage loan that is designed and offered by a private individual. Additionally, they also skip past the various specific requirements and roadblocks that are usually with traditional mortgages. Below mentioned are some reasons why borrowers should choose a private mortgage:

1. Easy to qualify for a loan

For most individuals, it can be a challenge to get their loan application request approved by a traditional lender. For example, if your credit score is not the best, or you are a self-employed individual and cannot provide proof of stable income, you can rest assured; that banks and other traditional lenders are more than likely going to reject your request. However, private mortgage lenders are not worried about the borrower’s credit history. They will provide the loan as long as they find the deal profitable to them.

2. Quicker approval process

When it comes to getting your mortgage processed, traditional lenders usually follow a strict filing process. It can stressful and time-consuming. Private lenders on the other hand private mortgages lenders are lenient and do not have to deal with the red tape that banks have to follow. So, acquiring a loan from a private lender is way quicker when compared to applying for a loan from a bank. If you have worked with a private lender before, the process is even quicker. A private mortgage makes complete sense if a real estate agent is offering a deal that is time sensitive.

3. Large down payment

Traditional lenders like banks will not finance the complete amount required for you to buy the property. This means that you will need money to finance the deal. If you choose to borrow from a traditional lender, a bank will require you to make a down payment of 20% of the property price. Private lending does require this, some private lenders even provide 100% of the funds required to buy the home. To find out more information about private mortgages, contact our team today.

The Bottom Line

If you are looking for a flexible and cost-effective method of financing to purchase your dream home, a private mortgage is the best available option out there. As mentioned above, borrowing from a private lender enables one to skip past all the hurdles associated with a traditional mortgage. If you are looking to apply for a private mortgage or to find out more details, please do not hesitate to contact AKAL Mortgages Inc today to get the best deal.