The loan industry has definitely come a long way. As a result, there are plenty of options when it comes to getting a loan. While the plentiful of options is always beneficial, it also comes with a downside. Specifically, it’s easy for an average individual to get confused with the different types of loans. To make things less confusing for people, this article will focus on hard money loans.
Hard Money Loans – What Is It?
At its core, a hard money loan is a type of loan that is secured by real property. Generally, hard money loans are used for short-term instances. For example, you want to buy something expensive, and it requires a down payment. However, you’re short on funds, and your next paycheck is enough to complete the down payment required. So, you take a hard money loan and use your house or car as collateral. This is just one of the many examples of how to use a hard money loan.
Another defining trait of a hard money loan is that you are usually obtaining it from a private individual or a small to medium company. You don’t usually get a hard money loan offer from traditional financial or banking institutions.
Why Hard Money Loans?
Hard money loans have plenty of advantages. Most of its advantages stem from the fact that you are using real property as collateral. The lender’s risk is reduced, and this means they can be more forgiving.
* Little To No Credit Checks – since the lender doesn’t have to worry too much about the loan since it’s backed by real property, the need for credit score checks becomes less important.
* Faster Processing – since you are getting your loan from a private or a small to medium company, processing times are drastically reduced. It’s not uncommon to get your loan money within twenty-four hours of the application, assuming that you get approved.
* Less Pressure – since the lender will simply obtain the collateral in the event that you don’t pay the loan, you’ll often experience little or no pressure from the lender concerning loan payments.
While hard money loans have plenty of benefits and it’s a legitimate form of a loan, there are plenty of dishonest operators out there. These entities are not there to offer a fair service. Instead, they could be scheming to find a way to get your money or property. It’s the reason why you must know where to get your hard money loan.
If you need help finding an honest and reputable hard money loan lender, then CaliforniaHardMoneyDirect.net is perhaps your best bet. They have been providing such service for years, and they have an impeccable track record for providing a fair and honest service.