Hard money Mortgages can be a great way to finance a specific or fun real estate investment but the Mortgage application process can be quite different from traditional bank Mortgages. Many potential hard money lenders Arizona aren’t prepared to apply for a Mortgage. Don’t be one of the unprepared borrowers and you can do that by following these easy, simple steps.
Find the right project. Arizona hard money is collateralized with the property in question so finding the right one is very important. A property valued in the right range may not be in a suitable neighborhood. Remember, rule number one is avoid the ghetto – even if you flip a mansion, no one wants to live next to a crackhouse. Hard money lenders want to know that the property and the location are a safe investment.
Also, always have an exit strategy. Hard money Mortgages are typically short term and usually are 1-2 years in length. The lender always wants to know that the borrower has a solid plan for either selling or refinancing the property long before the term is up. Knowing how you plan to repay the Mortgage is a key factor in a hard money lender’s decision. If you are doing this all wily nily, you’re going to look bad in the eyes of everyone and no one wants that.
Finally, have the proper documents ready. Hard money Mortgages are primarily secured within the property but also knowing about the borrower is very important. You may be asked about credit, income and assets. Like a boy scout, be prepared