Top Reasons to Consider Hard Money Lenders over Financial Institutions
Posted On April 11, 2019
The non-institutional lenders are often referred to as hard money lenders as they offer you with quick and faster loans with attractive interest rates in comparison to banking institutions. Being a borrower, you also have certain things to check before approaching a lender, and that is the reputation of the lender and business. You should consider a lender who has a reputed name in the market of financing.
The money lenders will offer various benefits in comparison to financial institutions, and the most important benefit is the flexibility of payment. With hard money lenders, you can discuss the mode of repayment and then come to a conclusion of mutually agreeable repayment plan which best suits you.
The next important benefit is the requirement of fewer documents for approval of loans. In traditional institutions, they have set some hard standard which you need to meet such as income history, experience, etc.
Private lenders offer zero prepayment penalties in comparison to big financial institutions. In case you have taken a loan from an established bank, and you pay off the loan before the maturation date then you are subjected to prepayment penalties.
However, the private lenders do not charge such penalties if you make payment before due date.