Are you looking for money to meet an urgent financial need? If yes, hard money loans from companies like Monroe Funding Corporation are some of the most viable options with a flexible repayment period. What are these loans and how do they work? Here is how you can access and use these loans in Miami:
The Lending Terms
These short-term loans have real estate property as the security. Lending experts also compare them to private-money advances since the funds come from investors. These loans do not look at the borrower’s credit score; they focus more on the security of the investment.
The amount that the borrower is eligible for is determined using a ratio of the loan and the property value. The borrower must meet other terms and undergo a loan underwriting process, which is typical with traditional investments.
When to Apply for These Loans
1. A Good Credit Score
Your credit history contributes to your credit score. If your credit score is too low, you will have difficulty in accessing a conventional loan. These loans do not consider your credit score as a requirement for loan eligibility. However, paying back your mortgage on time builds trust between you and the lender. You will then enjoy better loan terms and interest rates when getting another loan.
2. Property Investments
If you have property and the required documents to ascertain ownership, you can skip the lengthy loan application process. However, confirm that all your property documents are up-to-date and valid to facilitate loan processing.
When in need of a hard money loan, look for lenders within your location. From those you have shortlisted, you can compare the different interest rates and settle on a suitable lender. You will go through an underwriting process wherein you will fill out a form and present your property ownership documents. The lender will then conduct an appraisal on the property to determine its value.