We can find a private lender for your mortgage or teach you how to become a private lender. Most financial institutions avoid any risk associated with mortgages. Lower risk means that financial institutions reject many applications. People who can teach you how to become a private lender take a different approach to making a loans. They usually only lend in a certain geographic area and want to meet the client before an application is approved. By understanding the borrower’s personal and financial situation a private lender can reduce the risk and provide the required funds.
The most common type of mortgages that people look for are first and second mortgages. Most Canadian banks will not provide second mortgages and in this case you should look for a private lender that can provide the money. A private lender 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.
A private lender will want to inspect the home or property they are placing a mortgage on and in some cases will want to talk to the owner of the property. The inspection gives both the lender and borrower a sense of comfort in knowing who they are dealing with. Every property owner should clean up the inside and outside of their house or property. Consider painting to cover any areas that are dis-coloured or have water stains. Look at the property to ensure that it is well maintained and does not require any major repairs such as a new roof. A good house that is not properly maintained will have a much lower appraised value.
Choosing a private lender for your loan or mortgage can have certain advantages. First people who can help you find a private lender make the final decision regarding the loan. Private lenders have much more flexible criteria than most financial institutions. Furthermore, your personal connection with a private lender can help if you have any future problems with your loan. For more information on people who can help you find a private lender call one of our mortgage brokers today.