If you’re looking to buy a home, there are a number of options that home buyers can consider when trying to secure financing. This is true whether you’re buying your family home or making an investment. Among your available options when buying a home, you can either apply for a mortgage or a private loan. While the former is more traditional, the latter is becoming more common among home buyers. However, there are some common misconceptions that have been attached to private real estate loans. At Harper Financial, we can help you secure the necessary financing for your home by dispelling some of these myths.
Myth: Private lenders can’t fund in less than a week
Buying a house is competitive. You’re trying to give the best offer to a homeowner so you can meet their expectations. If you can’t provide the owner with the best offer, sometimes the speed at which you can provide financing is the card that you can play when negotiations get tough. When you apply for a mortgage, you often have to wait at least 30 days to get approval. If you’re working with a private lender, you can not only get financing much faster, you can get it within a week. Private lenders understand that there’s sometimes more urgency required in getting your home loan so they’ll be willing to work with you on that.
Myth: Private real estate loans are expensive
While it’s true that you’re likely to pay a higher interest rate and more in closing costs than working with a lender for a mortgage, private real estate loans can save you money in the long run. Private loans often come with shorter terms than traditional loans like six to 18 months, which means that you won’t pay nearly as much in interest as you would over the course of a 15- or 30-year loan.
Myth: Private loans are for desperate buyers
Private real estate loans are designed for a specific sector of buyers. Most traditional home buyers aren’t going to be applying for a private loan to buy their homes. Rather, private loans are meant to cater to the needs of businesses and investors. Those who are getting a hard money loan often use it to help invest in a property that has the potential for a quick turnaround and payoff. The ability to quickly pay off a loan, despite its interest rate, is appealing to both the lender and the person or organization taking out the loan.
Myth: Private lenders are predatory
There’s a fallacy that private lenders are lurking in the shadows for those desperate for financing to buy a house. This couldn’t be further from the truth. At Harper Financial, we understand that private real estate loans aren’t for everyone so we won’t qualify just anyone who applies for one. We make it a point to fund those who are looking to secure a loan for an investment property or their business. This means that we’re not out to get anybody. Instead, we want to help create opportunities for those looking for them.
Get a private real estate loan
If you’re looking to secure a private real estate loan, please don’t hesitate to reach out to our team at Harper Financial. We can help you explore your options for financing when buying a property. To learn more about how we can help, give our team a call today at 508-559-1619 or reach out to our loan officers directly. You can also send us a message through our contact form if you have any inquiries prior to speaking with our team. We look forward to helping you fund your next success.