Refinance With Hard Money
Homeowners facing foreclosure can find the much needed breathing room when looking to sell or refinance their property through the use of hard money loans. To refinance with hard money, homeowners have the ability to pay off the foreclosing lender, allowing them to sell their property or repair their credit in an effort to seek long term financing under more favorable conditions.
The first step to refinance with hard money is to locate potential hard money lenders. Hard money lenders typically restrict their lending activity to geographic area as a result of their knowledge of doing business in the local housing market. Borrowers should make a list of hard money lenders and due their due diligence when analyzing which one will be able to service their needs effectively and responsibly. After identifying a reputable and responsible hard money lender, the borrower should begin the preparation for the loan application process by preparing the required documentation requested by the lender. Lenders rely primarily on loan to value rations when considering a loan, so it is crucial that the borrower provide proof of the value of the property along with proof of equity, as it is more likely to be approved for a hard money loan when there is more equity in the property (lenders refer to this as “skin in the game”). The next step is to apply for the loan. Hard money lenders look to make the loan application process short and quick, allowing the borrower to access to the financing within a couple of weeks. Once the loan is accepted, use the loan to pay off the primary loan and move towards either selling the property or refinancing. Hard money is merely a short term bridge loan, and interest rates could be too high to carry over time.
Contact a specialist at HML Investments today for further information about refinancing with hard money loans.