Reasons Why People Choose a Private Mortgage?

When most individuals decide to purchase their dream house, they do their due diligence, survey a couple of banks and mortgage companies, and compare the various financing options. However, the sad reality is that few qualify for a mortgage from a traditional lender. The reason being their credit or repayment history is not the greatest. However, a private mortgage, on the other hand, is an alternative for those who have gotten their mortgage application denied by banks. Private lenders help borrowers bypass traditional lenders’ red tape, ensuring you secure the home of your dreams. Below-mentioned is some of the reasons why people choose a private mortgage:

1. The approval criteria are not as strict as traditional lenders:

A private lender will look past your credit score and history, including your household income, unlike a traditional lender. They can do that because private lenders assess the property’s value when financing the mortgage. They will be considering the degree of equity in your home. Ideally, as a borrower, you are required to have more than $70,000 equity. They will also assess the LTV, the appraised value of the property, and the location.

2. The mortgage application processing is much quicker:

Traditional lenders may take weeks, sometimes even months, to approve your mortgage financing. For those individuals that require immediate funds to take care of certain financial situations such as tax debt, or foreclosure, a private mortgage loan takes a minimum of two to three days to get approved.

3. Adjustable mortgage terms:

When it comes to mortgages from a bank, they are pretty strict with the terms and cannot be negotiated. On the other hand, private lenders are far more flexible and personalize the terms of a private mortgage loan to meet the borrower’s specific requirements.

4. Huge loan amounts:

While a few homeowners may consider getting a personal loan or line of credit to help care for their short-term financial needs. However, the amount they can access is limited. However, private mortgage loans are based on the equity of the current property; thereby, the borrower can borrow a huge loan amount.

5. The interest rates are low

The interest rates are usually high when you use your credit cards to fix any short-term payments. It is common for credit card companies to charge anywhere between 21% to 30% interest on payback, which can be difficult for most to pay. Private lenders charge anywhere between 7% to 12% interest rate based on your financial situation. Additionally, the fees associated with private loans are affordable as well. They range from 3% to 6% of the entire loan amount. For more information, get the touch with GNE Mortgages, the best when it comes to private mortgages in Mississauga.

Private mortgage options from the experts at GNE Mortgages

At GNE Mortgages, we have a wealth of experience in private mortgage financing. Our mortgage brokers are highly knowledgeable and have built a solid relationship with private lenders throughout Mississauga to help our clients get the best terms on a private mortgage loan. Don’t let your poor credit history stop you from buying your dream house. Give out team a call today to schedule an appointment or for more details. When it comes to private mortgage Mississauga, you cannot go wrong with GNE Mortgages.