When it comes to getting a private mortgage there’s a lot that you need to know. You need to know that there are risks, there can be difficulties (fewer when you choose the right mortgage broker!) and other things that happen when you get this kind of a deal rolling. You’ll want to know what lender you’re dealing with, that way you’re going to be able to get the one that’s right for you. Let’s get started!
What is a Private Mortgage?
They’re just another kind of mortgage, you’re just borrowing the money from someone other than a bank. It could be a private person, it could be a corporation – they’ll be more willing to loan to people that can’t get a traditional mortgage from a bank! It’s a good way to borrow and more and more people are borrowing this way. If you want to be able to get the financing you’ve always wanted, you’re going to almost always be able to get a private mortgage. Don’t count yourself out; just because you have bad credit doesn’t mean you have to get a bad mortgage!
Is it Hard to Find a Private Mortgage?
It’s easy to find a private mortgage, but it’s hard to find a GOOD one! You want a lender that’s interested in your kind of borrowing and that’s where we come in. When you work with a good mortgage broker you’re going to be able to find the ideal lender that will want to work with you. Don’t just settle for anyone when you can get the best one!
What are the Risks?
There are risks, and anyone that tells you differently is not someone you want to listen to. Let’s look them over here real quick:
If the Lender is a Friend or Family: private mortgages aren’t just with companies, they can be friends and family too. You’ll want to think about how your relationship with this person is going to change when money changes hands.
Is the Property Worth it?: you’ll need to know that the property you’re wanting to buy is worth the money and interest you’re getting in return.
Is this a Secured Mortgage? If you’re using equity in the home you’re buying or refinancing to secure a private mortgage, you could lose your home if you can’t repay the mortgage.
This is why it’s so important you work with a reputable mortgage broker to make the most of your terms. You need to know that you’re getting the best deal possible, and we’ll help you make the most of any situation.