There are many people every year who are denied loans because they do not meet all the necessary criteria of traditional lending institutions. Banks assess one's eligibility based on credit history, employment status, and collateral; people do not score high enough in all or some of these categories, must look elsewhere for a loan, which is where Atlanta private money lenders come in.
Private loans are provided through private investors who make funding available to people who are not able to obtain it through mainstream sources. Lenders or loan officers specialize in matching borrowers with investors who are willing to front them the money for a loan, these "middle-men" assist clients in finding the terms and rates which best fit their needs.
Those in search of a loan officer may find one in the Yellow Pages, online, or through a personal recommendation. Any lender one is considering doing business with should first be checked out in terms of their foreclosure rate, and also be requesting and contacting several current or past clients as references.
After choosing a lender they are confident in and comfortable with, the borrower will begin the loan application process. This begins with completing a "Statement of Information" form and submitting it as well as all supporting documents which are required, doing so gives the investor an overview of the applicant's financial situation. Clients should be sure to disclose any credit issues etc., with the lender, as they are in the business of finding solutions for such problems.
The particular money loan package available to the borrower depends on both the purpose of the financing as well as his or her financial profile. Clients will be offered different rates and amounts to borrow depending on the purpose for the funds and their ability to pay it back. Lenders want to hear details, so they know where the money will be going.
In the case of real estate loans, it may also be necessary to have an appraisal done, secure an Automated Valuation Model or Broker Price Opinion, and meet with an escrow company before approval. If there are any outstanding liens against the applicant or the property to be purchased, these must first be resolved, and the necessary documentation provided before a new loan can be granted.
Upon the approval of the loan, documents will be drawn up by the lender and presented to the borrower for review and signing. Next, the funds are issued to the client, proceeds forwarded to the investor, and all pertinent documents filed with the county. The loan will be "boarded" by the servicing company, which effectively sets up the payment plan for its lifespan.
Private loans are provided through private investors who make funding available to people who are not able to obtain it through mainstream sources. Lenders or loan officers specialize in matching borrowers with investors who are willing to front them the money for a loan, these "middle-men" assist clients in finding the terms and rates which best fit their needs.
Those in search of a loan officer may find one in the Yellow Pages, online, or through a personal recommendation. Any lender one is considering doing business with should first be checked out in terms of their foreclosure rate, and also be requesting and contacting several current or past clients as references.
After choosing a lender they are confident in and comfortable with, the borrower will begin the loan application process. This begins with completing a "Statement of Information" form and submitting it as well as all supporting documents which are required, doing so gives the investor an overview of the applicant's financial situation. Clients should be sure to disclose any credit issues etc., with the lender, as they are in the business of finding solutions for such problems.
The particular money loan package available to the borrower depends on both the purpose of the financing as well as his or her financial profile. Clients will be offered different rates and amounts to borrow depending on the purpose for the funds and their ability to pay it back. Lenders want to hear details, so they know where the money will be going.
In the case of real estate loans, it may also be necessary to have an appraisal done, secure an Automated Valuation Model or Broker Price Opinion, and meet with an escrow company before approval. If there are any outstanding liens against the applicant or the property to be purchased, these must first be resolved, and the necessary documentation provided before a new loan can be granted.
Upon the approval of the loan, documents will be drawn up by the lender and presented to the borrower for review and signing. Next, the funds are issued to the client, proceeds forwarded to the investor, and all pertinent documents filed with the county. The loan will be "boarded" by the servicing company, which effectively sets up the payment plan for its lifespan.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for How to find Atlanta Hard Money Lending he suggests you visit his friend's to learn more.
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