Before approaching North Carolina hard money lender, it is good to know what hard money is and its benefits. A hard loan is a loan that is secured using a real property. In most cases, these loans are mostly used in real estate transactions where the lenders are mostly individuals and companies, but banks do engage in hard money rendering.
We all sometimes need a boost of more money due to particular needs that come to our lives. This is what necessitated a North Carolina hard money lender to come up with various programs that ensure money is available at a good time for those who are in need. The benefits of hard money include the following.
Quick approval process
The traditional lending process was very tiresome and demanding. One had to provide many documents, a long process of reviewing your application, and your credit score had to be scrutinized to ensure that you fall on the threshold to qualify for a loan. With hard money loans, these tedious processes and intimidating scrutiny have been scrubbed by hand money lenders. The only interest in this process is the collateral that is attached to the loan in which you are applying. If the value of the collateral can cater to the money you are requesting, inclusive of the interests, there are no more processes of deciding on whether you have the capability of paying the loan.
Non-consideration of credit history.
Many borrowers would be barred from acquiring any loan if their borrowing history is reviewed. This is because traditional lenders put credit history as one of the considerations of acquiring a loan. There is a system that informs every traditional lender on your credit history, making it impossible to get a loan from any lender. With hard money loans such as North Carolina hard money lenders, your credit history is not part of deciding your loan worth. The most important thing about hard money lenders is the security on the loan and the security. The much concentration is on the loan-to-value ratio other than the debt-to-income, which is considered by many traditional money lenders such as banks.
In hard money loans, your loan is not always fixed to the collateral that you provided when securing the loan. If you decide that you want to transfer the loan to anew collateral, the lender will assist you in the transfer process with is very smooth. You agree with the lender on the method that would be convenient with any plans making it very flexible compared to other loans in which everything is done during the application process, and it follows the same procedure until the loan is fully paid. This is also known as a flexible mortgage.
Another attractive aspect of the hard loan is that there are no penalties due to delays in the delayed payments. In every loan taken from any organization, there are terms in which the loan should be paid in a specific period where if you default, it attracts penalties. When it comes to hard loans, it does not attract any prepayment penalty, which will ensure that your loan will not turn to be expensive than previously agreed in the terms and conditions. In case you clear a loan before the deadline to avoid late payments, it is just doing the lender a favor.
With this and very many aspects of hard money loans, it is clear it is good to opt for the hard money loans considering the flexibility, period of processing, and even how your loan is reviewed. This process is one of the best and very convenient for anyone wishing to take care of something within a short period.