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.
A private loan is made available by private investors who provide financing to borrowers who were turned down by mainstream lenders. Loan officers or lenders act as liasions between these investors and potential borrowers, matching them according to their needs. Terms and rates will vary.
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.
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.
A few more actions will need to be taken if the loan being applied for is to purchase real estate, such as an appraisal, obtaining either a Broker Price Opinion or Automated Valuation Model, and possibly communicating with an escrow company. It is essential that any outstanding liens against the applicant or property be resolved and that documented proof of this be provided.
When the investor approves the loan, the lender prepares all the contractual documents which are required to make it official. Clients must read these documents over very carefully before signing anything and ensure they fully understand the terms. Then the funds will be released to the borrower, proceeds directed to the investor, and the loan documents will be filed with the county. The loan servicing company will "board" the loan, which establishes a regular system of payments that will be in effect until the loan is paid off.
A private loan is made available by private investors who provide financing to borrowers who were turned down by mainstream lenders. Loan officers or lenders act as liasions between these investors and potential borrowers, matching them according to their needs. Terms and rates will vary.
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.
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.
A few more actions will need to be taken if the loan being applied for is to purchase real estate, such as an appraisal, obtaining either a Broker Price Opinion or Automated Valuation Model, and possibly communicating with an escrow company. It is essential that any outstanding liens against the applicant or property be resolved and that documented proof of this be provided.
When the investor approves the loan, the lender prepares all the contractual documents which are required to make it official. Clients must read these documents over very carefully before signing anything and ensure they fully understand the terms. Then the funds will be released to the borrower, proceeds directed to the investor, and the loan documents will be filed with the county. The loan servicing company will "board" the loan, which establishes a regular system of payments that will be in effect until the loan is paid off.
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 Private Money Lending he suggests you visit his friend's to learn more.
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