For borrowers and mortgage brokers, the chances of needing to deal with private lenders (hard money lenders) at some point during your search for a loan are becoming greater by the day. Unfortunately, outside of real estate professionals that deal with hard money lenders on a regular basis, very few individuals are skilled at communicating and selling these lenders on their credit-worthiness. The result is a bag of mixed responses from private lenders and a lot of frustration on the part of both mortgage brokers and their clients.Do you want to learn more? Visit Money Lender in Singapore.
So why is it so difficult to communicate with hard money lenders? They’re a tricky bunch because almost none of them are the same. What works for one lender won’t necessarily work for another, and they interpret information in a myriad of different ways. Going around in circles with private lenders can make your head spin and eventually make you think that getting approved for a hard money loan is more difficult than finding a needle in a haystack. But what if you could greatly increase the odds that your loan request will not only get a favorable look from almost all hard money lenders but also increase your overall odds of getting an approval?
There’s a phrase that floats around the private lending arena: “character counts.” The reference is to the character of a borrower, of course, but what constitutes character is defined a number of different ways. For some lenders it means knowledge and experience. Does the borrower seem to have the know-how to move their project to fruition? For other lenders it means mortgage history. Has the borrower ever chosen to walk away from a loan? And for others it almost literally means character. Does the borrower seem to be upstanding, moral and willing to accept responsibility?
We can’t discern what character is going to mean to every lender, and we can’t change who the borrower is. However, there’s an aspect to the term “character” that seems to be nearly universal in the world of hard money loans that you absolutely can control. You have the power to determine how private lenders are going to perceive you or your borrower, whether they consider you to be “a hassle to deal with,” or if your files come across with promise and potential. The trick is to know how to communicate with private lenders, and while some of these tips may seem trivial, not accounting for them can be the difference between an approval and a rejection.