Many financial institutions, including banks, rely entirely on credit report to determine individual creditworthiness. People with low credit reports due to huge accumulated debts cannot access loans. However, if you are on the flip side of credit and want to start a business or buy a home, you can still secure a loan. Some individuals are ready to take the risk of lending you. This article will give you hints of what to look for in a genuine hard money lender in Denver.
See if they have licenses. Acquiring A license acts as an assurance that the investor has met all the criteria and laid down procedures of lending. You can visit their websites on the internet and see their endorsement by the National Mortgage Licensing System. Due to the booming nature of the business, many investors do not get a license and can easily exploit you.
Possess enough experience. A real investor will stay in business for as long as they live. They have gained the trust of their clients. Due to the complexity of origin and servicing of hard money, only a veteran l will ensure no party loses in the process. A company that has been in the business for long is more reliable and has a reputation.
Check the speed of approving a loan. Hard money lending process is quicker than the banks. However, a genuine investor will take his time to perform due diligence on the property. They cannot approve a loan on a venture that is too risky. A suspicious one will even give loans in less than five minutes because they have hidden motives.
Check on transparency. An investor with a straight forward motive will have nothing to hide. All their rates are available in respective websites. Everything includes guidelines that are open to the public for scrutiny. It is contrary to dubious business people with very enticing prices but has hidden fees. They cannot explain how they come up with such rates.
Know if they are available to help. When you are desperate for a loan alongside huge debts, the chances are high that you will fall for any loan facility available. Some lenders take advantage of desperate loan seekers to hike prices by giving misleading information about their available products. A genuine one will take enough time to explain about their loans.
Take a look at the rates and fees. Expertise in the lending business will consider other factors before setting a price for their loans. Offering low prices do not translate to competitiveness. The regulators even set the standards about rates, but some choose to provide very cheap loans to attract unsuspecting clients.
Hard money lending is growing very fast in Denver, and it is difficult to tell which the genuine lender is and which is not. However, your task of finding a genuine one is made simple by considering the above attributes. If you find it still difficult to trust a lender, seek the help of a broker, who has a better understanding of the market.