3 Traits of Trustworthy Lenders
There are many forms of financing when it comes to getting a real estate loan: conventional loans, portfolio loans, and many more, each with its own purpose and requirements. That being said, one of the last-resort loans for those who are unapproved for any other loan is the “hard money” loans. Unlike other loans where it is based on the borrower’s credits, this type of loan is based on the value of the real estate. Hard money loans generally come with much higher loan-to-value ratios, meaning more money can be used to pay off the property with a much smaller closing amount.
If you’re looking to finance a property purchase, hard money lenders aren’t difficult to find. If you have access to a real estate investor, then asking them for reputational options is a good way to ensure you find the perfect lender to suit your needs. However, what happens if you are on your own to find a lender? You can base your decision on these three traits to ensure the hard money lender you work with is trustworthy and reputable.
1. They are experts in investing
Most if not all hard money lenders will be experts at financing real estate. However, not all of them will also be experts in investing. Why is this skill so important to you? It’s simple: a hard money lender is worth their weight in gold. With their investing skills, they can help you evaluate the deal thoroughly, ensuring that the deal is sensible and that you can achieve it. Working with someone without such skill will only lead to deals that leave you in trouble, hurting your finances while you’re trying to expand your investment portfolio.
2. They have the ability to quickly close deals
Speed is one of the most significant advantages any reliable hard money lender has to offer. That is because they have the ability to quickly approve your application even within a day, evaluate your deal thoroughly, then process them quickly to get them closed. This ensures you get your money quickly to proceed with your real estate purchase, minimizing wasted time and ensuring you do not end up losing out on the property because someone else made an offer before you did.
3. They are fully transparent, disclosing all necessary information
Only the best hard money lenders know that their business thrives if the trust is built. They also know that the way trust is built is not through some fabricated lie to make their offerings look good. Rather, it is through transparency that this trust is created. When looking for a lender, you know that you can trust them when they fully disclose their rates, terms, and fees. This ensures you make the best well-informed decision possible, allowing you to maximize your money.
Hard money lenders take on the risk that traditional lenders and banks refuse to take, acting as a last resort for those unable to get any other type of loan. Despite knowing that, do not jump in without doing some research on the lenders themselves. You never know if you are falling into a trap that leads to nothing more than trouble on your end. For that reason, ensure that the lenders you work with exhibit the traits we have shared above. Doing so will allow you to sift through the multiple choices of lenders, picking one that is reliable, trustworthy, and professional to ensure you work with the perfect deal to secure your real estate.
DFW Investor Lending, LLC is an investor-operated offering loan and appraisal services to ensure your real estate needs are thoroughly satisfied. If you are looking for hard money lenders in Dallas, contact us today!