What Borrowers Should Know About Atlanta Private Money Lenders
| 03:09:00 |
Needing a loan and getting turned down by banks and other traditional sources of lending can be very frustrating. People who don't measure up in the employment status, collateral, and credit categories will most likely have to direct their search for financing elsewhere, such as one of the Atlanta private money lenders.
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 settling on a particular lender, the next step is the application. Borrowers must submit a "Statement of Information" form and all relevant supporting documents, this is done to present the investor with an overall picture of the applicant's financial position. It's best to be forthcoming with the lender about any credit, collateral problems etc., since part of their job is to come up with ways to work around these.
Based on the information presented in the client's application, he or she will be offered a suitable money loan package that matches their needs, assuming they pre-qualify. The rates and amount of the loan are determined by both the ability to pay it back and the nature of its intended use. It's advantageous for the borrower to explain in detail to the lender, how the loan will be used.
If the loan is to purchase a property, appraisal, obtaining a Broker Price Opinion or Automated Valuation Model, and dealing with an escrow company may also be involved. What's more, any outstanding liens against the property or applicant must be resolved and confirmed with the appropriate documentation before any new loan can be approved.
Once the loan has been approved, the lender will prepare the official contractual documents for the borrower to review and sign. It is the borrower's responsibility to ensure that they have a clear understanding of all terms. Next the funds will be released and the proceeds directed to the investor. Loan documents will be filed with the county, and the loan servicing company will "board" the loan, establishing a payment system and schedule.
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 settling on a particular lender, the next step is the application. Borrowers must submit a "Statement of Information" form and all relevant supporting documents, this is done to present the investor with an overall picture of the applicant's financial position. It's best to be forthcoming with the lender about any credit, collateral problems etc., since part of their job is to come up with ways to work around these.
Based on the information presented in the client's application, he or she will be offered a suitable money loan package that matches their needs, assuming they pre-qualify. The rates and amount of the loan are determined by both the ability to pay it back and the nature of its intended use. It's advantageous for the borrower to explain in detail to the lender, how the loan will be used.
If the loan is to purchase a property, appraisal, obtaining a Broker Price Opinion or Automated Valuation Model, and dealing with an escrow company may also be involved. What's more, any outstanding liens against the property or applicant must be resolved and confirmed with the appropriate documentation before any new loan can be approved.
Once the loan has been approved, the lender will prepare the official contractual documents for the borrower to review and sign. It is the borrower's responsibility to ensure that they have a clear understanding of all terms. Next the funds will be released and the proceeds directed to the investor. Loan documents will be filed with the county, and the loan servicing company will "board" the loan, establishing a payment system and schedule.
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 Atlanta Private Lending he suggests you click here to learn more.
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