Types Of Hard Money Lenders To Help You Purchase Land
If you would like to purchase some land but do not have enough money to pay for your down payment, below are some different types of hard money lenders to help you get this money. Before you get started, make sure you check your credit score, because the lenders will likely not give you a loan if it is very low. Once you obtain a loan, you will have the land you have always dreamed of.
Hard Money Lenders
A hard money lender generally requires some collateral, so you would need to use your car or some other type of asset that is worth a certain amount of money.
Below are three different types of hard money lenders you can choose from.
Commercial Bank
Visit your bank or a local bank in your area, as they have different types of loans that they can offer you. They will do a credit check before they will offer you a loan. If you have bad credit, you will need to ask someone to cosign the loan for you. A cosigner would have to pay your loan if you do not, so make sure you can handle the payments first. Some banks may ask for collateral also if you have bad credit.
Credit Union
A credit union is another type of hard money lender you may want to consider. There are many benefits of choosing a credit union. For example, they often have cheaper rates. This is because they are a nonprofit organization, and do not have to pay taxes. Finding a credit union may be difficult, however. Some of them will only let you borrow money if you are a member of a certain organization or business. You should still try, however, because you may find one that will loan you money. If you have a friend or relative that belongs to a credit union, they may be able to refer you to them.
Mortgage Broker
To make things easier for you, you may want to consider using a mortgage broker. This person will find a direct lender or a bank that will give you the type of loan you need. They will work hard to find you the best interest rates to ensure your payments are lower.
No matter what type of loan you get, make sure you know what the interest rate is before you sign papers. A high interest rate will result in higher payments. For more information, talk to a hard money lender.
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