Private lenders provide a vital function for people who need money for private lender business loans or mortgages. There are many people who can’t get a loan from Canadian financial institutions because they have a bad credit score or are self employed; private lenders can provide mortgages for these people. Private lenders can provide private lender business loans for mortgages, home improvements and credit card debt consolidation. Private lenders realize that the most important factor is the equity in your home and not your credit rating. Private lenders want to understand your personal and financial situation and how any private lender business loans can benefit you.
The most common type of mortgages that people look for are first and second mortgages. Private lenders can provide private lender business loans for first mortgages with very competitive interest rates. Most Canadian banks will not provide second mortgages and in this case you should look for a private lender that can provide the money. Private lenders may charge a higher interest rate for a second mortgage due to the higher risk associated with the mortgage. Private lenders are also a good alternative to refinance an existing mortgage even if your present credit rating is low.
Your personal credit score can have an impact on whether or not you qualify for a private home loans or mortgage with the major Canadian banks. Most Canadian banks and financial institutions will not provide funds if you have a poor credit rating but private lenders do not base their lending decision on your present credit rating. Most private lenders are interested in the loan to value (LTV) ratio in your home or property. If you would like to know what your credit score is go to the Equifax website and follow the tabs indicating a free copy of your credit score.
Private lenders like to inspect the homes and properties that they are providing private lender business loans for; the inspection process could take anywhere from one to three hours. Private lenders are looking for any significant problems that could have an impact on the value of the property, leaking roofs, broken windows, broken drywall or water stains on the walls are signs that the house is poorly maintained. Homeowners should take some time to clean their home inside and outside; a fresh coat of paint on the walls can greatly improve the appearance of the house. If money from the private home loans is being used to renovate the home, show the private lender what repairs or improvements will be done and how the repairs will improve the property value.
A private lender could be a viable option for your present mortgage and private lender business loans requirement. Our mortgage brokers can match your financial needs with a private lender that lends specifically to people in your situation. Most private lenders have certain criteria on providing funds, finding a lender for your needs is what our mortgage brokers specialize in.