Hard money loans are an effective way to get quick case for short term needs. The last thing you want during a time like that is for your loan application to get denied. Here are some tips from hard money lending expert Danny Manich on how to get your hard money loan approved.
The first thing you need to do is make sure that you have a clear understanding of what hard money loans are and how they work. Hard money loans are typically given by private investors rather than banks or other financial institutions. The reason for this is that hard money loans are given based on the value of the property being used as collateral, rather than the borrower’s creditworthiness.
This means that hard money lenders are more interested in the value of the property being used as collateral than anything else. As such, it’s important that you have a clear idea of what your property is worth before applying for a hard money loan. The best way to do this is to get a professional appraisal.
Once you know what your property is worth, you can start shopping around for hard money lenders. There are a few things to keep in mind when doing this. First, hard money loans typically come with higher interest rates than traditional loans. This is because hard money lenders are taking on more risk by lending money to borrowers with less-than-perfect credit. As such, you should expect to pay a higher interest rate if you’re approved for a hard money loan.
Second, hard money loans are typically only given for a short period of time – usually 12 months or less. This is because hard money lenders want to be able to get their money back quickly in the event that the borrower defaults on the loan.
Finally, hard money loans often require that the borrower put up some sort of collateral – such as a piece of property or a vehicle. This is because hard money lenders want to be sure that they can recoup their losses if the borrower defaults on the loan.
These tips come from Danny Manich who is a long-time expert in hard money lending.
According to Manich, hard money loans are best for the following situations:
– You need to raise cash quickly
– You have less than perfect credit
– You’re willing to pay a higher interest rate
– You’re borrowing for a short-term need
– You have collateral that you can use to secure the loan
As for the differences between traditional loans versus hard money loans, here’s what you need to know. Hard money loans are given based on the value of the collateral, not the borrower’s creditworthiness. As such, hard money loans usually come with higher interest rates. They’re also typically only given for a short period of time – usually 12 months or less. Finally, hard money loans often require that the borrower put up some sort of collateral.
If you’re thinking of applying for a hard money loan, keep these tips in mind to increase your chances of getting approved. And if you have any questions, be sure to consult with a hard money lending expert like Danny Manich.
Danny Manich is a long-time expert in hard money lending and has helped countless people get approved for hard money loans. He offers the following tips for getting approved for a hard money loan:
- Make sure you understand what hard money loans are and how they work.
- Get a professional appraisal of your property to determine its value.
- Shop around for hard money lenders and compare interest rates.
- Keep in mind that hard money loans are typically only given for a short period of time.
- Be prepared to put up collateral to secure the loan.
Following these tips will increase your chances of getting approved for a hard money loan. For more information, consult with Danny Manich or another hard money lending expert.
