The mortgage industry is not limited to banks and financial institutions. It expands to another side where there are lenders who are not affiliated with any of these big guns and deal in ways which are beneficial to both the borrower and the lender.
What is a private mortgage?
A mortgage which is borrowed from a private lender and isn’t subject to a bank or institution is called a private mortgage. With such a loan, traditional norms are relaxed a bit to make it more affordable.
Who deals in private mortgages?
Various lenders who loan money privately to the borrower are people you can get a private mortgage from. Your mortgage broker can help you get the access you require to get a private mortgage and help you with the procedure thoroughly.
When does a private mortgage make sense?
A private mortgage can be accessed by anyone whenever they require it. But there are a few special cases when a private mortgage is preferred. They are as follows:
- Bad credit: If you have bad credit then you are most likely not eligible for a traditional mortgage. Unless you can perform some miracle overnight to increase your credit score and improve your history, you will either be stuck with a low mortgage amount or will have to wait. Private mortgages can help you when you have bad credit. A private lender which usually look at the value of your collateral and not your finances.
- Less time: There could be a situation where you have to get a loan quickly. You can access the same in much lesser time when you opt for such a loan. The approval process takes very less time and hence you can get the mortgage faster and more easily than usual. This can be an extremely useful factor when you are looking to get an emergency fund or a large amount for a serious issue quickly.
- Less procedures: Private mortgages usually involve less procedures. The lender will look at your equity and the value of your collateral. They may look at your history and score and other documents, but the procedures are much less when compared to traditional mortgages and much more flexible. This can help you to finalize and get your mortgage amount very quickly.
- Lower rates: When you opt for this, you will be guaranteed a lower rate since the private lenders are there to give you the best mortgage deals in the worst situations. Mortgage brokers sometimes work with specific lenders who can give you access to exclusive deals thereby getting you a good mortgage plan.
- Flexibility: The lenders of these types of loans are usually very flexible when it comes to deciding the term and conditions of the plan. They are willing to customize it reasonably, thereby guaranteeing you a loan which suits your needs well and is of your choice. Having a mortgage broker with you can increase your odds of getting a good mortgage deal easily.