Are you thinking of purchasing your own house? As much as you look forward to having a home on your own, you can’t help being worried due to the financial aspect. The sad reality is that most potential homeowners can’t afford purchasing a house unless they take a mortgage loan.
These home credits are most commonly provided by banking institutions only if borrowers fulfill their requirements and respect their terms. Since many people aren’t eligible for applying for a bank loan, they’re left with the option of borrowing money from private lenders, which don’t impose such strict regulations.
Nowadays, there’re numerous non-institutional lending companies, such as the firms dealing with private mortgage in Vancouver. These are their main benefits.
Higher chances to qualify
Most people interested in purchasing their own house end up disappointed as banks reject their applications due to their inability to qualify for a mortgage loan. Banks impose strict conditions in terms of having a stable job and not being in any kind of debt. Not fulfilling these conditions indicates low chances of being selected for a loan.
On the other hand, money-lenders are not as thorough as banks regarding your place of employment and debt history. They don’t require a pile of documents to be taken for reviewing, so you won’t have to worry in case you can’t obtain a specific file. Furthermore, self-employed people have low prospects of getting a credit from a banking institution as they aren’t considered to have a secure job.
Therefore, in case you’re a freelancer or run your own business, your chances of qualifying for mortgage are only provided by private lenders as they aren’t afraid of taking a risk by trusting you to pay the loan back.
Going through the process more quickly
Applying for a credit in the bank can take ages to be completed, mainly as a result of the countless number of documents you’re required to provide. Reviewing these documents is a lengthy procedure, which not only wastes your valuable time, but also keeps you on the edge of your seat, eagerly waiting for the ultimate decision.Click here to review the complete checklist of required paperwork.
Conversely, private loaners do not lengthen the application process more than it’s supposed to last. Therefore, if you’re pressed for time and it’s in your best interest to purchase a house as soon as possible, then you’re advised to apply for a mortgage credit at a private lender instead of waiting a lifetime for your loan to be approved by the financial institution.
Also, in case you’ve previously used the services of the same loaner, then the procedure is likely to be completed even faster.
Shorter time span for paying the credit back
Taking a credit from a financial institution suggests paying it back in a long time span of more than twenty years, which puts tremendous pressure on borrowers. As much as you’re financially secure, there’s still a little voice in your head telling you that twenty or thirty years payback period is simply too long, as you couldn’t be certain of what might happen in the future.
However, private loaners don’t provide such extensive payback periods; in fact theirs are quite shorter as much as one or two years. Therefore, if you don’t want to feel constant pressure and you consider yourself able to pay the loan back in a limited timeframe, then private loaners are certainly a better option for you.
When it comes to deposit, financial institutions most commonly ask for at least twenty per cent of the amount they’re lending to you, thus providing you with a more favorable interest rate. However, money-loaners may not even ask for a deposit, only for the installments plus the interest you’re expected to pay every month.