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Mississauga Private Lenders
What is private lending?Think for a moment about traditional money loaning institutions like major banks & credit unions... these are not Mississauga Private Lenders, they are monitored and governed by governmental agencies and have strict criteria and guidelines for loaning money to people. Now, any entity or organization that is not a traditional lending institution is considered Private Lenders. Today, Private Lenders can be anyone from a close friend, a family member, a private corporation that partakes in private loans, an accredited investor or a private company. These alternate entities provide what is known as a relationship-based position with the borrower, it is more personal and can be less of a burden on the borrower, depending on the circumstances and the lender.
How does private lending work?If a private company, investor or corporation is approached to be Mississauga Private Lenders, then there are some considerations that must be met during the application process. These types of Private Lenders have access to funds, but they do want to establish a borrowers’ financial standing, ascertain the level of risk involved by loaning out money and possibly a credit check, although there is room for people with less than ideal credit ratings to still qualify for a loan. If the loan from Private Lenders is to be applied to real estate, property or any other substantial asset, then the risk level of the loan lessens, as the lender can sell the asset if the borrower defaults at any time on the loan. People that are considering Mississauga Private Lenders as a mean of securing a loan should be prepared for higher interest rates and various loan terms, as again, these are not traditional lenders that are regulated.
How can private lenders offer customizable credit solution?For whatever reason that people wish to turn to Private Lenders, the outcome is positive upon paying off the loan completely. Establishing better credit and a better payment history is just the beginning of the many perks that come with using Private Lenders. Throughout the term of the loan and conditions allowing, borrowers’ can look to traditional banks to consolidate the Mississauga Private Lenders loan/payout the loan (providing the person has shown a good track record of on-time payments), which will decrease the interest rate and possibly provide more realistic terms for the new loan. In this case, borrowers’ can establish themselves with a regular lender, which is ideal for future endeavours and raising credit ratings.
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