Los Angeles Hard Money Lenders say that all too often, with an accepted offer in hand, some buyers and Los Angeles Real Estate agents are compelled to play the patient waiting game while a traditional lender or bank goes through the long process of final loan approval.
Regardless to say there are a handful of differences between these conventional lenders and Los Angeles Hard Money Lenders.
One of the most basic elements in approving a traditional loan is of course the borrower’s credit rating.
Most Los Angeles Hard Money Lenders say that if you’ve been following the real estate industry over the last several years, you’ll know that regulations have really contrived banks and other traditional lenders to require more and more higher credit ratings prior to any loan approval getting through the system.
Los Angeles Hard Money Lenders, are not under the same pressure as traditional lenders.
At times, Los Angeles Hard Money Lending Companies can successfully fund hard money loans for borrowers who, more often than not, don’t really meet the minimum credit rating criteria that traditional lenders are obligated to be held accountable for.
Now, if there’s one thing that we’ve come to get a better picture of over the past couple of years, it is that a person is not defined by their credit score.
A variety of individuals have been victims of an economic downturn or other circumstances that were simply beyond their control, and have been fighting their way back successfully for a long period of time.
In fact, we often discover that they are actually in very strong financial situations: it’s just that their credit scores don’t yet reflect that fact.
When you’re sitting on a far-away, corporate loan committee, it’s impossible to understand this. But when you’re a Los Angeles Hard Money Lender, and you’re sitting across the table or desk from the borrower, you can better understand the situation.
Los Angeles Hard Money Loan experts say this is why an arbitrary credit score isn’t how approval for Los Angeles Hard Money Loans is figured out.
There are really two major elements for Los Angeles Hard Money Lenders when they make their final decision on a potential borrower’s loan application, and these are:
The ability of the borrower to meet his or her obligations, and the value of the property.
Non of these two main factors have anything to do with a credit rating. It’s a fact that today a lot of stable borrowers are recovering from going through a time in their lives when they were hit with a low credit rating.
By the way, many people who want to buy their first home, get into investment property, or refinance existing real estate, discover that a Los Angeles Hard Money Loan gives them the means to boost their credit scores and finally get back into the “good graces” of the conventional lending industry.
In fact, using hard money loans, Los Angeles residents with credit score problems sometime have the opportunity to purchase a property and almost instantly secure conventional loans.