What are private or urgent money mortgages?
Can you tell me what private mortgages are , because they are called this way? Being as they are private equity mortgage loans at Lite Lender Company we want to explain what type of financing it is. Because we have seen many people who confuse them with loans seen in banks.
And although it is mortgages, the uses of this financing have nothing to do with what we would see in a bank. In other words, private mortgages are very different from bank mortgages. They neither offer the same quantities nor the amounts are the same, nor do they serve the same purpose, the requirements being the same.
If you want to know more about these particular loans, all you have to do is read on.
What are the differences between private mortgages and those signed by a bank?
The first difference has to do with who the creditor is. In other words, when signing a bank loan, it is the bank that lends. In urgent mortgages, on the contrary, it is lenders who do it. In this way, the biggest difference between each of these options is who lends the money.
This explains the rest of the differences between each of these companies, being something to take into account. Being investors who sign these mortgages, what this means is that the cost of the same will be higher than the bank.
We can point out some of these differences:
- In private mortgages, investors and lenders, not a bank, do the financing.
- Consequently, the interest rate in the former will always be higher.
- The term to return the money is always shorter in private mortgages.
- Through private capital we can get financing with Financial Credit Institution, without income and even with debt.
On the other hand, even though they are also mortgage loans, the same cannot be said for a bank.
- The response time on private mortgages is less than 48 hours.
On the other hand, by bank this term can be months.
- The financing requirements when we go for loans between people are always lower.
This makes these mortgages easier to obtain than bank views.
- Private equity mortgages are used to get fast money, pay off debts, pool credits, exit the Financial Credit Institution …
Instead, those signed by a bank are used to purchase real estate.
- Maximum private mortgage loans finance up to 35% of the appraised value.
On the other hand, this percentage can be up to 70% per bank.
Before, even banks could finance 100% of the purchase.
How to apply for a private mortgage also called private mortgages?
When managing one of these operations with a property guarantee, the processing is not complicated. At Lite Lender Company what we usually say in these cases is that everything depends on the company you go to.
However, the procedure can be said that it is normally very simple, consisting of the following steps.
- You make the request in the private financial.
- After the request, the company sees whether or not you can process the credit according to the guarantee provided.
- If it is possible, the lender will ask you for the documentation of the property.
It is also common to be asked for some proof of income (payroll, pension, self-employed …)
- After this the company analyzes the viability of the mortgage.
- If it is feasible, it transfers the offer.
- After approval, it is up to the customer to decide whether or not they are interested in signing it.
- The signature of course when dealing with a mortgage will always be done at a notary.