If you are having a difficult time qualifying for a conventional mortgage loan, then you may want to consider a private mortgage loan. A private mortgage loan is that which you get from a third-party lender if your attempts to qualify with a conventional lender have failed. This sounds a bit risky, we know. However, there are many benefits to obtaining a private mortgage loan. That being said, there are also an equal number of disadvantages to this process. Here are the pros that need to be considered before you try to obtain North East private mortgage loans.
Quick to be Approved
Private mortgage loans have a short and quick approval process, whereas getting the same loan from a bank requires a lot more time. To avoid this tedious process, a private mortgage loan is a right choice for you to make.
Easy Qualification Criteria
In comparison to banks and conventional mortgage brokers, a private mortgage loan is a much easier process to qualify for. Homebuyers who get rejected by banks, etc., do go in this direction and enjoy hassle-free and quick approval.
No Stress Test
When it comes to conventional lenders, applicants need to take and pass a stress test to qualify. This is not the case with private mortgage loans, as no test-taking is required, and your qualification chances remain just as strong.
Debt Consolidation
A private mortgage loan can consolidate your outstanding debts into lower monthly payments. This makes the process of managing your finances much simpler and, furthermore, reduces the high-interest costs which were being paid prior to the third party loan.
Save Your Money on Renovation
A third-party lender will finance not only your home but also the maintenance and renovation costs. This is a huge benefit to those who have enough for the down payment but not quite enough to spruce up the place.
In conclusion, while obtaining a private mortgage loan is considered a risky move, there are quite a few benefits to the process which make it worthwhile. Not to mention, it cuts down on the exorbitant rates and turns them into manageable payments, giving you the benefit of better financial planning. Not only that, but to state the obvious, obtaining this third-party loan is heaven for your savings account, so you have enough saved up for a rainy day. Furthermore, a private mortgage payment, while having higher interest rates, cuts down on other costs, overall leaving you with a profit.
