Arizona Commercial Hard Money Lenders VS. A Bank

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Mortgage and Lending with Level 4 Funding NMLS 1018071 AZMB 0923961

Not all borrowers are familiar with the benefits of Arizona Commercial Hard Money Lenders. Knowing the difference between bank loans and Texas Hard Money Loans is very important when seeking a loan.

Many borrowers hear the phrase Arizona Commercial Hard Money Lenders and they picture a group of unsavory characters who are doing business in dark alleys and in the basement of old condemned buildings. But that is not even remotely accurate. Arizona Hard Money Lenders are just private lenders who are offering loans based on the value of the collateral being offered rather than the credit score and credit history of the borrower. And as you might guess, adding in the word commercial simply refers to the type of property.

Because the lenders are private and not traditional, meaning banks and mortgage companies, they are free to finalize the terms of any loan in any manner that they see fit. But there are some general terms and numbers that can be used when comparing these private lenders to traditional lenders. In the past, when private lending was not as popular, the terms and rates were less generally accepted, but in today’s competitive market and with larger numbers of Arizona Commercial Hard Money Lenders, the terms are very similar.

When seeking a loan from a bank, the approval is based on the borrower’s income, credit score, tax returns, and other personal financial information. A private lender is basing the loan approval primarily on the value of the real estate being used as collateral for the loan. So, for the borrowers with a FICO score under 700 who get turned down by more banks, hard money is a great option. In addition, traditional lenders require a huge mountain of documentation to verify all of the borrower’s financial information, but a private lender only needs to get some very basic personal information and then some details on the collateral property.

Time Is Money

In the world of real estate, time is a very, very valuable commodity. And unfortunately, nothing in the traditional lending world moves quickly. A bank or mortgage company will require a loan committee review all the borrower’s documents and financials to determine if the loan application will be approved. But a private lender can quickly and efficiently review the collateral property’s information and determine if the loan can be funded and the exact amount of the loan. A bank or mortgage company is likely to drag out the loan approval and funding process for as long as three months while a private lender will often times have the loan funded in under ten days.

Upfront Fees

A traditional lender is going to charge fees regardless of the decision to fund or reject a loan application. There could be inspection, appraisal, application and research fees that must be paid even before the first document is reviewed. But Arizona Commercial Hard Money Lenders are going to be much more likely to charge only a minimal fee is any at all before determining if the application will be granted or rejected. Understanding the differences between working with a traditional bank and a private lender will certainly help borrowers to make a more well-informed choice when seeking a loan.

 

 

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO


NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701  

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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