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4 FAQs to Ask Experts Before Applying for Hard Money Loans
Before applying for any investment loans, you want to make sure that the lenders you are working with can meet your needs. It is important to consider your individual goals for your investment and for the loan process.
Although many aspects of hard money lending are out of your control, deciding on the right lender is entirely up to you. To help you choose wisely, here are 4 FAQs to ask experts before applying for investment loans.
Ask: What Is Your Experience?
Before hiring anyone for any job, the first thing to take note of is their experience. When you speak with potential lenders, ask them about:
- their experience as a hard money lender
- how long they have been doing this work for
- the companies they are affiliated with
- their general process for loan approval and funding
The right lender like Asset Based Lending can show you a portfolio of their work, including before and after photos, and other pieces of evidence that show they are good at their job.
Following up on the integrity of what was voiced in the interview will give you more insight into how genuine the potential lender is about their process and ability to assist you with your hard money loans.
If the lender does not have any references, this is a sign that they either lack experience or have not had good luck. Either way, you are better off working with someone else to address your hard money loans.
Ask: What Is Your Interest Rate For Hard Money Loans?
Your prospective lender should be able to tell you what their interest rate is for the total cost of any hard money loans. Keep in mind that hard money loans do not work the same way, financially speaking, as traditional loans.
If a lender is serious, they can explain these differences to you in detail. The recommended lender interest rate is 12%. If the lender requests anything higher, they may be trying to make more than is truly fair.
Ask: How Quickly Can I Get My Loan Approved?
If your hard money lender is serious, they can get any hard money loans approved and funded within two weeks. Sometimes, this timeframe is only three to five days.
While it is wise to ask experts about the hard money loans process, you should also carry out your own research to feel assured that you’re making the right financial move.
Understanding basic loan terms, the way payment penalties work, and how additional fees are paid for, should come before working with a lender. You’ll want to have a solid estimate of how much the process will cost you from the start.
The Bottom Line
It may take time to find the right candidate for your investment dreams, but it is worth the wait once you’ve committed to terms that meet your standards. Start contacting experts today to see how they can help you reach your goals!